I got my iBook dual USB used and had similar problems with the battery (didn't hold a charge). I bought a new battery and now I get nearly 5 hours per charge. My IT guy at the office told me when you to install a new battery (in your case, one that hasn't been used or charged), you should charge it up to 100%, then use it and let it drain all the way down before charging it to 100% and then draining it down. This is supposed to give it the capacity to hold a charge longer. It seems to have worked with my new battery.