Normally, the machine goes to sleep after a while, and the sleep light will PULSATE.
hook it up to a power supply while it's still sleeping, and hitting any key or opening up the book will wake it up.
If you don't get it on external power soon enough (5-6 hours), the pulsating light will die and you'll have to use the power button. However, it will still load back right to the point where you were, rather than having to boot up again.
If it's not working that way, something is broken.
Step 1:
Calibrate the battery.
-Hook it up to power supply until light is green and battery fully charged.
-Take it off external power and don't connect it again until it goes into forced sleep while you are using it.
-Wait until the sleep light itself dies from lack of power.
-Hook it up to power supply until battery is fully charged (you can continue using the machine as soon as it's got power).
This should be done every two months or so.