Hi,

I ran a test to see how long the batteries last with an ME-66 drawing phantom power. I get a respectable 3 hours 45 mins roughly. However, the problem is with the battery indicator. For more than half the time, I'm running on 1 (out of 3) on the battery scale. From the time this 1 changes to a blinking battery sign to it saying BATTERY LOW (at which point recording stops) is barely a couple of seconds. (I had a video camera aimed at the Tascam display to record all this.) So the battery indicator is essentially useless. My battery type is set to Ni-MH.

Anyone else see this issue?

I see the same thing on the DR MKII. i just let it roll. I'm getting at least 5 hours and now I'm used to it.

That's typical with rechargeable batteries, even on devices that have a nickel–metal hydride battery mode. Rechargeable NiMH AAs are normally 1.2 Volts A typical alkaline is 1.5 V. (new) So the meters, are not that accurate
One must have a recharging regiment and a way keeping track of the battery sets. If that's not possible, alkaline would be a much better choice. Normal NiMH's also self-discharge and should be charged just prior to use. Though Sanyo Endloops or Rayovac Hybrids' hold a charge for a few months or more without significant capacity loss.
For more info, this has been discussed previously.. search.