@trisha,

I still don't know what your problem is. You have a new battery, obviously not the original N900 battery (capacity: 1320 mAh), but you're not satisfied with its performance.. is that it?

First of all: AFAIK there's nothing special to do about the battery. I've always recharged my (original) battery without turning the N900 off, and it's always been OK.

Second of all
The battery reporting on the N900 is a bit messy as far as I can tell. Once thing to check is if you are using the bq27x00_battery module (comes with the kernel-power) or not.

If bq27x00_battery be aware that the values it gives are mostly crap for all I care(d). You can look for posts about this (I think dr_frost_dk and Estel have a solid understanding of the issues with this module).

Try blacklisting the module and see what your good old N900 tells you about the battery (using e.g. lshal.. or conky).