My Macbook had the same problem. It is 2 years old and the battery was down to less than one hour of charge (sometimes only 20 mins). It reported 1500mAh on full and 230 cycles. It had "Check Battery" under condition. I spoke to Apple Care (I took the 3 years) and they agreed to replace it under warranty. I got a case number, made an appointment at the Genius bar the following day, and had it replaced.
You should look at this link:
http://www.apple.com/support/macbook_macbookpro/batteryupdate/ where Apple discuss a battery problem where they are giving an extended warranty. The sypmptoms they list are:
+*Affected batteries will have one or more of the following symptoms*:+
+Battery is not recognized causing an “X” to appear in the battery icon in the Finder menu bar.+
+Battery will not charge when computer is plugged into AC power.+
+Battery exhibits low charge capacity/runtime when using a fully charged battery with a battery cycle count (as shown in System Profiler) of less than 300.+
+Battery pack is visibly deformed.+
I was most impressed with Apple and think they gave excellent service, the machine is now back to nearly 4 hours on a full charge.