So you're saying I have to delete the whole D drive before I can move its space to the C drive?
I recommend asking on Overclock.net (ask in their Windows Forum). Even though it's for overclockers, the site is full of experts. I used to be on there full-time back when I HAD time, and I vaguely recall some of the experts saying that you can do this quite easily. I'm unable to remember if this can be done natively in Windows or if it requires the use of third-party software, but I do vaguely remember that you can do what you want to do here.
As for installing to D:, it doesn't matter where you install it, just as long as you don't install FreeSpace 2 to "C:\Program Files (x86)" (or "C:\Program Files" in 32-bit versions of Windows).
I used a G-Parted Live DVD to consolidate partitions. I can post links later but gotta run now.
It is easy, I've done it many times using GParted, the link to
GParted is here,
however, one HUGE caveat: you
MUST, MUST, MUST allow Windows to go through it's chkdsk after you use GParted, as the drive layout has changed and the chkdsk lets Windows update some part of the filesystem that GParted doesn't (GParted just flags the drive as 'dirty' for Windows to check upon reboot and this causes Windows to detect the new drive layout accordingly.)
As long as you let chkdsk go through, you can use GParted. However, if you just want to erase your D drive and use the entire disk for C, there is no reason to do so, as you can just use Windows as that would be easier (you can always have GParted finish it if Windows refuses to expand the C drive, and as the last resort, just create a new partition and leave D there, but I cannot imagine a scenario where that would happen -- either Windows or GParted will manage the trick). The only reason you would need GParted is if you are trying to resize a partition that required moving another partition.
EDIT:
So you're saying I have to delete the whole D drive before I can move its space to the C drive?
Yes, unless you use GParted.
This would take possibly up to several hours, as GParted would need to move the entire D partition over (depends on how much is stored in D). I've done this with GParted before, it works fine, just takes forever.
Honestly, if you want a smaller D partition instead of removing it,
and you have very little (10 ish GB) stored there, just copy everything to C, delete the D partition, expand C but leave enough for a new D partition, and then create the new D partition and copy everything back over, it is probably easier that way unless you have multiple hundreds of GB on the D partition already.
Actually, I think Acer has a utility to do this for you (delete second drive and combine the two) -- you could check for that option as well. Not sure if it copies D over to C first or what, though, so be sure to read the instructions.