Compaq Presario V2205US Battery and Power problems

I have a Compaq Presario V2205US laptop. Without the battery installed the laptop works with electricity supply but will shut down sometimes. If I press the power button it would start but power would shut down again. I used a new power supply unit and it behaved the same way.
When I put the battery back in it and the laptop is connected to the electrical power supply unit, the battery charge indicator keeps flashing which according to the compaq manual the battery has reached critical low and needs charging. The battery indicator shows 0% charge but the laptop will work on battery alone for nearly 2 hours without power supply unit. I do not understand why the battery indicator shows 0% and still works with battery.
When the laptop is switched off and I have connected the power unit to charge the battery, the battery indicator still flashes as if its critical low instead of it showing a steady charging indicator light. The manual says when the battery is fully charged the lit charging indicator will go off (not lit). This operation is not happening. The charging indicator keeps on flashing and the battery power level shows 0% instead of something like 60% charge.
Please help me solve the above problem. I want the charging to work normally. It used to work properly some months ago.
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More about compaq presario v2205us battery power problems
  1. I forgot to mention in the above that the laptop powers up and works well and normally with both the battery and the power unit now. It does not switch off as before but the battery charging problem still exists.

    Can someone help me with the battery charging problem?
  2. It sounds like something in the power control circuitry inside the notebook is broken, and it can't properly detect the charge state of the battery.
  3. A screw had come off the cooling fan and was shorting a chip near the power jack. The power DC chip burnt off so I had to give it to a technican to instal one. Still waiting for the laptop. The screw was interfering with the charging information.

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