Incredible, wireless is functioning perfectly with no blacklist on acer-wmi required.
Tests as follows:

Installed Patch
Remove blacklist on acer-wmi
Shutdown
Power on from cold

graham@LENOVO:~$ sudo rfkill list
[sudo] password for graham: 
0: acer-wireless: Wireless LAN
	Soft blocked: no
	Hard blocked: no
1: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: no

Result - wireless enabled and working

Wireless hotkey off

graham@LENOVO:~$ sudo rfkill list
0: acer-wireless: Wireless LAN
	Soft blocked: yes
	Hard blocked: no
1: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: yes

Result - wireless disabled

Wireless hotkey on

graham@LENOVO:~$ sudo rfkill list
0: acer-wireless: Wireless LAN
	Soft blocked: no
	Hard blocked: no
1: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: no

Result - wireless enabled and working

Wireless hard switch off

graham@LENOVO:~$ sudo rfkill list
0: acer-wireless: Wireless LAN
	Soft blocked: no
	Hard blocked: no
1: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: yes

Result - wireless disabled

Wireless hard switch on

graham@LENOVO:~$ sudo rfkill list
0: acer-wireless: Wireless LAN
	Soft blocked: no
	Hard blocked: no
1: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: no

Result - Wireless enabled and working

Restart Laptop warm boot

graham@LENOVO:~$ sudo rfkill list
[sudo] password for graham: 
0: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: no
1: acer-wireless: Wireless LAN
	Soft blocked: no
	Hard blocked: no

Result - wireless still enabled and working

*******************************************************************
Test with acpi off to enable CDRW/DVDRW and check wireless
Reboot with acpi=off in grub.cfg
The below acer-wireless does not exist
#################################
## 0: acer-wireless: Wireless LAN
##  	Soft blocked: no
## 	Hard blocked: no
#################################
Result - wireless enabled and working with below result - blacklist acer-wmi is not required
graham@LENOVO:~$ sudo rfkill list
0: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: no

Wireless hotkey off and on has no effect on disabling or enabling wireless

Wireless hard switch off
graham@LENOVO:~$ sudo rfkill list
0: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: yes

Result - wireless disabled

Wireless hard switch on
graham@LENOVO:~$ sudo rfkill list
0: phy0: Wireless LAN
	Soft blocked: no
	Hard blocked: no

Result - wireless enabled and working
*******************************************************************

Couple of questions:
1.) Without the patch installed, the work around enabled the wireless with blacklist on acer-wmi. Now that wireless is is working with the patch installed, and the work around and blacklist is not required, does the wireless work more effectively e.g. more stable, interface with power management better etc?

2.) The new release Ubuntu 11.10 is due around October 13th I think, but correct me if I'm wrong. Will this patch work with the new release? I was looking forward to some of the new features, Mozilla's Thunderbird email client, Deja Dup backup utility, the new 3D acceleration engine for faster rendering and better panel and launcher performance, and of course last but not least the new kernel 3.0.

*** That aside, thank you so much for helping me with this, I really appreciated how you took the time to work on this with me, very cool.

If you ever need testing done please don't hesitate to email me any time, I would be glad to help.

Oh, my CDRW/DVDRW is still a problem with acpi enabled. With the workaround to set acpi=off I have no power management settings for the battery etc. Will you be helping or will it be picked up by someone else... I'm probably asking to much :)

One thing to note is that setting acpi=off does remove the '0: acer-wireless: Wireless LAN' function and the soft hotkey does not work.  Should I note this in the acpi Bug #856253? 

Thanks again for your support Seth.

Cheers,
Graham.