I have a PRS300 too. I found that you just cannot connect the USB cable to a standard 5 volt USB charger to recharge the battery. The USB cable must be connected to a powered up computer to begin charging. There is a red light near the power switch that shows charging is underway.
My quick and dirty solution was to pick up a 2-in-1 USB 2.0 Power Data Cable for PSP from DealExtreme that has both a mini USB connector AND a PSP power connector at one end with a standard USB connector at the other end. This cable can be used with any 5 volt charging unit to charge the battery in the Reader. Use the yellow tipped power connector rather than the mini USB and the red light comes on immediately showing charging is underway. This cable cost me less than $2.00 and solved the problem.
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