Yes I have solved it. My N900 is working great.

What threw me off initially was the local cell phone shop carrying crappy old completely dead batteries that I tested my phone with.

He is selling chinese fake nokia batteries that have no juice left in them whatsoever (for 25 $).

I went to Ming Wireless in Toronto. Ming tested with other battery and phone started , so they charged my battery for like 30 min with universal wall charger (that attaches to battery pins) and gave it enough boost to kick start the charging process.