Consider m*n matrix C and invertible square matrices A and B with m and n dimentions.
If all three matrices belong to a Field F(all elements of each matrix belongs to F), we can show that there is A and B that:
$ACB = \begin{bmatrix}I_{r} & 0\\0 & 0\end{bmatrix}$
Where $I_{r}$ is and identity block and zeroes represent all the other elements of the result matrix which are zero.
How should I approach proving this expression ? I thought about transforming C to it's row reduced echelon form, but I cannot make much progress from there.
I believe you are referring to the following theorem: if $C$ is a $m\times n$ matrix you can find two matrices A ($m\times m$) and B ($n\times n$) such that
$$ ACB=\begin{pmatrix} I_r & 0 \\ 0 &0 \end{pmatrix}. $$
This theorem is true and in fact $r$ is the rank of the matrix C. The proof I've seen of this theorem (existence of the invertible matrices $A$ and $B$) uses induction over $m+n$ (sum of columns and rows of $C$). If $m+n=2$ then $C=(a)$ for some $a\in F$ (and then you can easily find $A,B$).
If $m+n>2$, there are two options
$$ \begin{pmatrix} 1 & 0 & \cdots & 0\\ 0 & & \\ \vdots & & C^* \\ 0 & \\ \end{pmatrix} $$ And we have $$ \begin{pmatrix} 1 & 0 & \cdots & 0\\ 0 & & \\ \vdots & & C^* \\ 0 & \\ \end{pmatrix}=A_1\cdot A_0 \cdot C\cdot B_0\cdot B_1. $$ $A_1\cdot A_0$ is invertible (because both $A_1$ and $A_0$ are invertible) and $B_0\cdot B_1$ is also invertible. $C^*$ is a $(m-1)\times(n-1)$ matrix and due to our induction hypothesis there are invertibles matrices $A^*$ and $B^*$ such that $$ A^* C^* B^*=\begin{pmatrix} I_s & 0 \\ 0 &0 \end{pmatrix}. $$