I've got almost the same problem here, on a PowerBook G3, except that my battery has never been to the point of not being recognized. It always gets detected, under OSX, OS9 and Linux (I got three OSs on my Powerbook).
The problem is, it does not accept a charge. It sits there, at 0% for ever. Here too the OS used does not make the slightest difference. X-charge gives the same log, except it doesn't say the charge has stopped, but nevertheless, it remains at 0%.
I tried the above hint, also resetting the powermanager, resetting the PRAM (cmd-opt-P-R and let it chime 5 times) which also resets the NVRAM, if done from a cold start, but nothing helps.
I know the battery is not completely dead, as it still blinks, when in the PowerBook, and the Powerbook is plugged in and the little button on the battery is pressed. It blinks one of the LEDs for several seconds and that's it. Apparently batteries are only completely unrecoverably dead, when they don't even respond in that way anymore, so there is some hope - I hope!
BTW, I also tried the Battery Reset from Apple, although it is meant for the G3 Series PowerBooks, but that too didn't help. :(