I have been using a puffed battery for 3 months now with no loss in power or flight time(1350 XMseller special). Even when i charge it, the cells stay within .050 of an Amp from each other. I went to my LHS and showed him the battery. He told me puffed batteries are not any more dangerous than a non-puffed battery but that the life-span would most likely be diminished. I would recycle only if it has physical damage, like a hole.maybe even if the cells are not closely matching anymore on a balance charge. Seems like this is another issue that has opposite opinions that work. I can only go on my experience of course, but I would keep it...Always use caution when charging, even if the battery is in perfect shape.

Z