Win 7: After Acer Recovery, goes back to Start-up Repair Loop

I could really use some help with this. I've tried everything I can think of, have scoured the net for solutions and trouble-shooting ideas. The post is long but I want to give a clear picture of what has been done.

Acer Aspire 1810T (Timeline) Win 7 Home Premium, 64-bit

This computer is only 18 months old and I'd really appreciate your help.

Recently I started having issues with the laptop, at first occasional BSODs and shutting itself down.

Then it went to 'launch startup repair' loop. With the message at the top 'windows can't start, possibly due to recent hardware or software changes.'

After being shut down for a while (a few hours, a day ... ), it would start normally or I could start in safe mode or it would go back to 'launch startup repair' and LOOP.

I tried to use Acer erecovery option (partition) of 'reinstall but save your files, music, etc.'

Partway through received BSOD:

volsnap.sys Address 8B1ABB38 STOP: 0x0000007E

After a few days, I fire it up again (instead of firing it out the window...) and it comes up automatically to the erecovery screen.

I choose 'restore to factory default' ... follow it through, and voila ... looks like I am back in business. All settings are done, etc. and I'm getting message that drivers are installed (lower right-hand corner ... not middle of main screen) ...

And then ...

The Computer reboots on its own and I am BACK in the 'launch startup repair' loop.

Obviously there is no recent 'hardware or software' installed (as per the error screen) if it's back to factory default.

I believe the hard drive to be good.

I tried Win 7 memory test (before recovery to factory) but could not keep laptop running long enough to complete it.

Just now was able to boot into Safe Mode and started memory test. At 7%, the screen went to horizontal lines (blue and white) and froze there for an hour. Would not allow esc=exit or F1-options.

What can I try next?

Am I dealing with a hardware issue now? How would I confirm what needs to be fixed or replaced?

I'm travelling in Mexico and don't trust someone else to mess with my machine until I know for sure what the issue is.

Thanks in advance for any help or ideas.