Hmmm. Since I've never heard of this happening before to a Dell batttery on these forums, I think it's probable that you bought a counterfeit. Good luck getting your money back. I wouldn't want another batttery. However if it's not a wolf-in-dell-clothing, you may have some warranty though Dell. I might pursue that also. I can see from you picture that you have a serial number. They should be able to give you some help...? I would think...?
If you can get some money back, or don't want to take the chance of giving your beloved Axim another colonic with cheap battery juice, you may want to look at these threads:
http://www.aximsite.com/boards/showthread.php?t=71247
http://www.aximsite.com/boards/showthread.php?t=70372
The $50 2200mah battery deal expires on 2/28.