first off, my setup....

xxxt-cr
Yeah Racing 4000mah 2s lipo
losi xcelorin 10.5 motor/esc combo.
dx3s

now my situation....

running the lipo for my first time, i set up my losi system to cut off when needed according to their program. i check out the battery with a voltmeter and i get 5.7 volts. it's not a great meter but its digital and hasn't ever been off that i have noticed. does the ESC completely shut off at ~6 volts or does it die and then kick back on if you press the throttle again??? mine never killed itself from what i could see...

i belive 5.7 is to low and lets hop the pack did not get smoked 6 volts is the lowest u want to go on a 2s lipo

I know haha that's why im asking if my esc completely shuts down or what?

Also I am charging it now and it shows that it's taking just about the whole 4000.......

If your charger accepts it, it is fine. Your esc should completley cut off but plug it back into the PC and check the settings are still the same. Also set it to 6.2-6.4 volts it is better for the lipo

Good lipo cell can go as low as 2.7v, but I wouldn't routinely push any lipo that low. I use 6.2-6.4v as a cutoff depending on what I'm running. I want a little safety margin and won't miss a few min of run time anyway.

Just look for puffing (swelling) - as long as you don't see any, you're prob good. When I hit lvc, mine will stutter 1st, then if I don't quit, it will completely shut down, but I'm not running the same one.