When did you buy your iBook, bluehz? The battery behaviour is not for sure normal, it might qualify for the battery change in your local Aple Store.
Arden, the issue has not been completely fixed.
Blue, reinstalling the OS X may fix it. I after gettting the new battery (it works perfectly) still didn't get the warning "battery low"; I wanted it back as it's annoying to not have it (and go suddenly to sleep). I got it back installing OS X again. First saving all files, applications, preferences in ~/Library etc, then taking the battery away for installation time (precaution), installing OS X and the combo updates ... and then when using with the battery it gave back the warnings.
Some think that iBooks etc have a limited life that counts as a total amount of charges. When you leave the battery during AC use, at least mine drops to 100 to 95 % in 1-3 days, and then recharges back. Thus that is a recharge every few days without using it really. Unplugging the battery while in desk use may prevent the battery charging and emptying too often. And if you install OS X again, and then run the battery to 0 % (forced 0% - e.g. play with your machine to 0% in OS 9, and then with single user mode to be sure it is in 0 % ), recharge it, run to 0 in OS X and empty it again a few times, that could improve it at least a few %. Or after ... (how long time?) your battery might just be approaching it's end of life. I'd try reinstalling first - do you have the combo drive or can you save your data somewhere, e.g. in an external hard drive before?
Mine in its worst gave less than 15 min of operating time - shutting off at 94 %.