Here's something else to try:
1) Start the Eee PC up with the battery in and the AC adapter plugged in
2) Open up Power Options in Windows. In my case, the battery reads 100%
3) Remove the battery
4) Wait a minute or two and plug the battery back in
Doing this will hopefully make the hardware recognize the battery again, and it should appear as discharged in the Power Options.
It seems that many people are having this issue, which comes down to a defective battery. If the above solution doesn't work, you might just have to RMA the laptop.
Solution source
I had to RMA the laptop, and got a replacement. Thanks for your answer though. – Imran – 2009-12-07T04:24:09.283