Let me explain a little bit here. There are 3 items which will be of interest. The first is the designed capacity. PM or BatteryBar (I'm using v3.3.3 if we're talking about the same software) will tell you that. For mine, it is 56.16Wh (Watt-hr). This means if my machine draws 10W, a fresh battery can see me through 5.616 hours. If my machine draws 20W, then 2.808 hours, you do the math.
Next item is the current charge capacity. As Li-on batteries age or under-go charge cycles, some parts of it will be irreversibly damaged and will not hold any charge at all. This means that there will be wear and tear and this is normal. So if you look under PM, there is a 'Full Charge Capacity'. For mine, it is currently 36.19 Wh. Approx 36% battery wear (56.16 - 36.19)/56.16 * 100%
Last item is the cycle count. This just tells you how many charge cycles the battery goes through. Your first use date is Apr 2009 but ran through 330 charge cycles, well-done!

That's more than once per day. If your battery wear is less than 30%, I'll say your battery is still in very good condition, considering the usage.
Do note that heat, not age or charge cycles, is the #1 killer for batteries. PM will also show you the battery temperature. My observation is that my x200 is able to maintain a temp of between 30-40 while in operation. The reason why pple says take the battery out if you're on AC is because of heat, not because of charge cycles