All right, here are the latest news:

The latest circuit is this:



Full size: http://img38.imageshack.us/img38/1665/circuit11.png

I'm 90% confident it's correct and without big mistakes, even if I wish.. why?

All right, simulating this we get some interesting results:



Open this in a new window: http://img696.imageshack.us/img696/94/diag.png

As you can see from the graph, the upper pane, the current going into the RED led cut off when battery voltage reach 4.2, which is acceptable; so, when we put the battery in the charger, RED led turns on. When battery goes up to 4.2V the led turn OFF. Nice, uh? battery is full

What is not so *nice* is the remaining current flowing into the battery past 4.2V: (bottom pane) there's still 64mA going! - at 4.3V battery voltage, mAmps are only 10 left.. but the charger is still pushig the voltage up to 4.4 circa.



So, I'm in a good mood, and I want to see some fireworks happening! here's the setup



I'll let you know, if I don't get too distracted at the computer, I'll keep a watchfull eye on that multimeter reading

Ka-boom?

P.S. The battery, don't get confused by that hologram.. for 2.88$ I got it (shipping included) from eBay.. - so it's perfectly expendable.