I just downloaded the Ubuntu file to my chromebook and its not letting me open the file to actually download it. When I click on it to open the file it tells me to go to the chromestore to find an app that can open this type of file because the file is not supported. I just got my chromebook today so I dont think its a computer issue. I don't understand why it's not letting me open the file. I downloaded it directly off of the ubuntu website and downloaded what ubuntu had recommended me to download.
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You can't install the Ubuntu image from the Canonical website on any Chromebook. Chromebooks have a different booting mechanism than most laptops, so you need a special install process to install Ubuntu on some of these laptops.
You can follow these instructions that are specific to the C7 Chromebook you mention: http://liliputing.com/2012/11/how-to-install-ubuntu-12-04-on-the-199-acer-c7-chromebook.html
Note that this is Ubuntu 12.04, but I believe that is the latest supported release (as I post this anyway.)

Suman
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Whilst this may theoretically answer the question, it would be preferable to include the essential parts of the answer here, and provide the link for reference. – Warren Hill Sep 21 '13 at 07:38
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Hopefully this will help you find the answer to your question as well. http://www.andrewq.netau.net/tutorials/how-to-set-up-ubuntu-on-chromebook/

Micheal
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1-1 This needs the helpful content in the body of the answer please, not just a link elsewhere. – Tom Brossman Sep 21 '13 at 07:03