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Sounds as if you have a 500 with the infamous "battery meter bug". It's a bug in the display of the battery meter; there was a firmware update which fixed it, which you should be able to download from Sony's support site.
To correct the display of the battery meter, turn on the Reader and plug in the wall charger. Leaving the Reader turned on, disconnect the charger plug from the Reader, wait a couple of seconds, then plug it back in again. The battery meter should immediately jump to "full". Unplug the charger again.
Best to get the firmware update and fix it, though.
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