Battery Recalibration

I have been having problems with my battery for a while now, and I recently decided it needed fixed.
When I plug in my charge cable, the battery reading will charge all the way up to 100%. Then when I use it without the cable plugged in, the reading will quickly (about 20 minutes) drop from 100% to 7%, at which point the computer shuts off and goes into hibernate mode. Once the battery reaches 0% (about another minute,) it will turn back on, and the laptop will run on battery power, with charge reading 0%, for at least 2 more hours.

Someone suggested a battery recalibration, but I am not really sure exactly how it would work in my case. The instructions read "run the laptop on battery power until the laptop 'shuts down.'" Then the battery is somehow magically recallibrated.

My question is, will this method work in my particular situation? Or in other words, exactly how should I recallibrate my battery? Do I
A.) run the computer down to 7%, then turn it back on and continue to let it run all the way to dead?
or B.) some other method?

 

Directions
http://www.ehow.com/how_6107351_recalibrate-laptop.html

I've never done this. My Acer netbook came with instructions for conditioning the battery and that's what I did when it was new.

 

Did the recalibration. The battery was still intollerably low. I just bought a new one. thanks for your help.