13-month-old battery dead?

About 10 days ago I noticed my battery would drain abnormally quickly - and recharge just as fast. Then about a day later I noticed my battery icon had a big X in it, with no info about % charge.
When I unplug it, it completely dies. The clock gets reset to 12/31/1969 anytime I unplug it, even when I've already shut it down.
Does this mean its dead? Already? I bought this PowerBook in early April 2005.
Any recommendations? Do I absolutely have to buy a new battery, and how do I know if its covered by the warranty?
Thanks.

Welcome to the Apple discussions.
If you haven't already, you should read the two Apple notes on notebook batteries here and here.
Note that Apple discusses battery longevity in terms of the number of charge/discharge cycles and not calendar time.
Apple's warranty considers the battery a consumable item, unless there's a manufacturing defect. Assuming you have Applecare (if you don't then this is moot), the agreement says "b. Limitations The Plan does not cover:(ix) Consumable parts, such as batteries, except in respect of battery coverage under APP for iPod or unless failure has occurred due to a defect in materials and workmanship"
I've seen one battery (not an Apple) fail like that, when it was plugged in all the time, and never discharged.

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