My girlfriend bought me an Axe CPv3 for christmas. Anyways long story short .On my 3 cell 11.1v pack that came with the heli, I have readings of 3v,6v,and 8v tested by my fluke meter. When i try to charge it using the charger balancer that came with it the battery indicator light blinks red. Does this basically mean that my battery is junk?

Are you checking the voltage readings on the balance plug with the Fluke?

What is the voltage on the deans (output) plug? If 8v is the total pack voltage its probably toast.

I have a voltage reading of 8.9v at the discharge leads. Still the same problem with a blinking battery indicator light when I try to charge.

Anything less than 3.7 volts per cell is BAD! If your total voltage at the discharge plug 8.9 vdc, I would have to agree with BH in that the pack is dead!

The #1 key thing to remember with Lipo's is not to over-drain them, they do not respond like the Nicads or NiMH batteries which allow them to be drained to almost 1.2 vdc per cell.
Excessive current draw can cause them to swell, reducing there ability to hold/take a charge. So if your motor draws 25 amps under full-load, use at least a 15c (30amp max draw) lipo although a 20c (40amp max draw) would be better.
A battery monitor is a good investment (about 25 bucks), I use the HR Poly X lipo monitor on 3 of 5 heli's I own, it warns me of when I'm approching the bottom of the battery (with both visual & audible indicators), has an adjustable range and works with up to a 4 cell Lipo.

Shadow

Excellent thank you very much for the helpful response. I am reasonably new to this great hobby and I appreciate the help.

Ok so I got a new battery from my LHS as that one is hooped. Got one flight out of it (just hovering and skimming light on the floor) put it on my charger about 2hrs50mins later the green light comes on telling me its charged. I popped it into my heli went to wind up and theres little to no power at all so I immediately take the battery out and test it. got 9.5v at the discharge deans, what is happening? Is it possible that my heli is messing up my batts? Is there anything else I can check? The batt is on the charger again and the indicator light doesn't blink like the previous times. See how it goes this time I guess, I'll give it one more chance after that its goin back maybe I will try another brand.

Sounds like your charger is inoperative.