I had the same problem before, but I installed netbook remix 9.04
(final) on my AOA110 and wifi works "out of box". Installing linux-
backports-modules-jaunty even made the led to work. Though before
installing I upgraded bios to latest version (3309 at the moment).

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acer_wmi in Jaunty on Aspire One exposes non-functional (always disabled) 
rfkill device
https://bugs.launchpad.net/bugs/319825
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