Most likely an internal IC got blown off inside the battery. The battery can be new, and you may have used it only a few times, but if you have a power surge, or metal connectors were lose, it is very easy that an internal component has been damaged by electricity. Laptop batteries are very fragile in the sense that they are not resistant to current fluctuations (if there is a sudden fluctuation in your power source, then there will be a current surge in the current coming from your laptop ac adapter), temperature changes, overheating, and humidity.
If the power is shown as 97%, that does not mean that the battery is holding 97% of its power. There are many reasons why your system could be showing 97% and yet not going into battery mode; but the most likely reason is that there has been an electronic damage inside the battery - indicator will have last capacity value registered in the internal battery memory.
Based on my experience, you most likely will need a new replacement battery for your gateway m275 laptop.
You can find a cheap one at http://www.batteryhippo.com
Your model is at the following URl:
new battery for a gateway m275 tablet running xp just stopped working. it showes 97% charged but will not turn on battery power.Has the battery gone bad or the system can not read it?