Hi Fireredburn1,
In your first mechanism, you don't show the protonated lactone before bringing in the bromide. Where is the proton sitting? Also, your ending structure is a carboxylate. Wouldn't that be a carboxylic acid in this reaction?
The acetic acid works as a solvent, it's a very good solvent for this reaction.
you glossed over some arrow pushing in the second mechanism, but it looks right to me.
Have a great holiday!