Hello and Welcome to the Forum.
What you are describing is a normal set of events for an old Li-Ion battery which hasn't been properly charged/ used for a while. I assume this is a Genuine I.B.M. battery with "I.B.M." name printed on it? No, I don't think your battery is "damaged," just old LOL. It sounds like you have "re-conditioned" it a bit by fully charging/ discharging it a couple of times. It seems your actual battery life is about 1 hour 30 minutes.
After fully charging the battery, use the laptop normally and once again observe how the battery behaves. If it does indeed last about about an hour and a half under normal use, and then a message pops us warning you to plug in your battery when it shows about 10 % remaining, then be happy with that. Don't expect 4 hours unless you purchase a New, Genuine battery. If battery meter shows a lot of time remaining but the laptop cuts off into Stand-by without warning, then perhaps a few more charge/discharge cycles will get your battery to behave more nicely, but it's probably on its last legs
More battery care tips here: http://batterycare.net/en/guide.html#descTot
If you don't have "Lenovo Power Manager" installed on your laptop, install it right away. It will give detailed stats about the health of your battery. Don't just depend on the battery icon in Windows. Let us know if you need the link for Lenovo Power Manager. I think it's posted on the Forum here somewhere.
Too bad U.S.P.S. has banned international shipment of Li-Ion batteries: viewtopic.php?f=11&t=104014
I sometimes ship batteries to established Forum Members overseas directly, or via a forwarding service. U.S.P.S. may
allow shipments starting again in January. In the meantime we can ship via the more costly U.P.S. or Fed Ex.
I have Genuine I.B.M./ Lenovo T43 batteries at a nice price here: x200,x60T,x61,T43,x41 Tablet,T60,T61,R61,T400 BATTERY: viewtopic.php?f=11&t=99121