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With a 980watt load the run time is only 7 minutes on a brand new battery. If you have the system on full load your run time will be much less and it has likely damaged the battery. here is the APC web site page for your model. If you are running that much equipment I think you need either a bigger UPS or another 1500 and spread the load out.
Try to do a runtime calibration using your powerchute software or SNMP agent. Check what is the runtime there, or check the runtime setting of your Powerchute software, maybe it set to more than the actual runtime of the UPS.
It could be that the cable to the front-panel got damaged during the battery replacement. After all these years you would think APC would improve that aspect of their design. All I can suggest is inspecting the cable and where it connects to the front panel.
You need to run recalibration on the unit. The supplied PowerChute software & cable will allow you to do this if you hook the UPS up to a PC (I know it works with the serial cable, not sure about USB). If you only have a MAC then I cannot offer a solution other than to buy the standalone PowerView device from APC. It will cost a bit more than a battery, but may save you from buying needless batteries in the future. I finally broke down an bought one, but note that I was still having the problem after the 1st recalibration. By trial and error (and maybe a vague memory) I put my MAC in sleep mode, that dropped the load to stop the lights from flashing. Then I recalibrated with a 22% load and now it finally seems better (lights no longer flashing). This was with a Smart-UPS 1000.
Let me know if that helps.
My solution was to unplug everything, hit the reset button, and then power the unit back up. The problem I found to be that I had my laser printer connected to the "surge + battery" side, and for some reason no laser printer can be connected to it.