It used to be common knowledge that to get the best life out of a rechargeable battery (both per cycle and in number of cycles possible) you should strive for full charge and full discharge. With modern batteries, there are sophisticated circuits that monitor charge. However, the circuit is not actually part of the battery; so, it needs to know what its seeing. Hence calibration.
That said, only a few people on this thread have mentioned calibration. And, some of the posts suggest they are not doing it entirely correctly. Calibration for MacBooks and PowerBook G4 (15-inch Double-Layer SD) is different from the old iBooks and Powerbooks of yore. The main difference for the newer laptops is the need to
keep it plugged in and on for 2 hours after completing the charge during the charge end of the cycle and the need to
keep the computer asleep for 5 hours after complete discharge during the discharge end of the cycle. This tells me the newer batteries benefit from an additional trickle charge and discharge at the ends of the cycle.
see:
http://support.apple.com/kb/HT1490
I would say if this doesn't work, the battery is a dud. Jazojas12, it looks like yours is a dud, although the calibration seemed to have helped some.