Man,
I have to buy one of these batteries soon for my H320 and I'm sure glad I saw this thread before I went and got one. I'm also very glad that thing didn't blow up and burn your house down. Those Li-po's can be very dangerous, ever see those vids of laptop batteries exploding? I know some guys who fly park flier hobby planes that use a metal can for them while they are on the charger. I don't know exactly what caused that battery to swell like that but its sure not a good idea to ever plug it up again, I'm not even sure I would have it in my house.
+t for your troubles man!
Hopefully someone around here can give us a clue as to what happened here.
h4nk3f4n