It sounds like you need a new battery and/or battery charger. I had the same problem with a simular camera before and just replaced both the charger and the battery because I wasn't sure which one of them was faulty. I haven't had a problem since then. I bought them from the website www.needbattery.com the company guaranteed thier batteries for a year and thier price was the cheapest on and off the internet that I could find. They have both batteries and chargers for your specific camera. This should take care of your problem. Hope this helps
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This actually a really common problem among Canon point and shoot cameras. There are a couple of methods that have worked well for others.
1. Open the battery compartment and remove the batteries. Then take a regular wooden pencil and place the eraser end down onto the battery contacts. Rotate the pencil to remove any corrosion. Sometimes a lack of proper battery contact will result in the low battery indicator.
2. Take a toothpick and wedge the tip under the battery contact and break it off. This will put more pressure between battery and contacts.
You can also try installing 3rd party firmware at http://chdk.wikia.com/wiki/CHDK_in_Brief This is a bit technical and will probably void your warranty, but might be worth the try.
Check if the charger is working. If yes Firstly, make absolutely sure that you have a pair of fresh HIGH
QUALITY batteries, in fact go and buy a couple of duracells. Digital
cameras are notoriously power hungry and it is very possible that a
pair of cheap standard batteries will not be able to run it for more
than a few minutes. Check that the terminals of the batteries and the
camera are clean. If none of this works, and you did have fresh
alkalines or equiv. then it will have to be returned for repair.
Some cameras have a bettery setting in the menu. You need to make sure this setting is set to the type of batteries you are using. Usually when you use akaline batteries and even if you put in fresh batteries but still get the low battery indication then your camera is set to rechargable (Ni-Mh). Ni-Mh has more power to it then alkaline so this is why you get the low indication.
Not the camera obviously - works OK
Replace the NiMah batteries- get several sets and keep one set in the bag charged with one set in the camera.
You may be able to 'refresh' the original batteries by putting them into a small flashlight and running them until the bulb goes out.
This discharges them completely- then recharge.
It is said batteries have a 'memory' so that a battery that is down say 50% and recharged will only recharge that 50% and the other 50% is lost for use. So you have to flatten the batteries completely