Battery health=40% time for a new battery?

So from tiger cache cleaner I got the following information
capacity=1773 mAh
cycle count = 327
current capacity= 1770mAh
voltage= 16466mV
absoluteMaxCapacity=4400 mAh
Battery charge= 99%
Battery Health=40%
My ibook g4 1.2ghz is about 16 months old and has been used everyday. I have frequently left it on and have plugged it in when it is low or out of batteries.
Recently for about the past 3 weeks, while showing a full or 60% charge, my ibook will shut down at random. When I start it up again, it will stay on for 10 to 20 minutes unplugged before it shuts off again. When plugged in it works fine. I have not tried a new battery, I have not reset the PMU (it said all Ram disks will be permenently erased?) and it will not let me calibrate the battery because it will not stay on long enough to drain it. When I push the batteries button I get two green lights out of four.
is it time for a new battery? Is says I have done 327 cycles.
thanks for all the help.

It's supposed to keep 80% capacity after 300 charge cycles.
A PMU reset is in order:
http://docs.info.apple.com/article.html?artnum=2238
Don't worry about a RAM disk. You have to have created one in order for there to be one to be erased. If you don't know what one is, you don't have one.
Try resetting the PMU and see if that will allow you to calibrate the battery.
If things still aren't working right, a new battery is probably in order.
Read Apple's recommendations for maximizing battery life and lifespan here:
http://www.apple.com/batteries/notebooks.html

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