RE: hobbico mkII and li-poly?
When you charge the battery, the charger should slowly increase the voltage up to 4.235 volts per cell, and then stay at that voltage for a while. So, in your case, if the charger isn't reaching about 8.5 volts before cutting off, there's something wrong with the charger, or maybe the battery. If the charger seems to be doing the right thing but the battery still doesn't hold a charge, maybe the battery is damaged.
For details of how LiPoly batteris are charged, see [link=https://www.fmadirect.com/support_docs/item_1080.pdf]FMA direct's LiPoly app manual[/link], and go to the "Charging" section. There's a whole lot of useful stuff about LiPoly packs in [link=https://www.fmadirect.com/support_docs/item_1115.pdf]FMA's other LiPoly manual[/link].
I have a Hobbico Mk II charger, and have charged 340 mAh and 1200 mAh 2-3 cell Kokam and E-Tec LiPoly packs, with no problem. LiPoly batteries charge the same ways as LiIon - the Hobbico manual is just poorly written, and doesn't say this.