"It has to discharge down to 3.8v"

I don't understand this. Do you mean you have a higher voltage after a run ?

i noticed that even with a cut off at 3.4 volts my nanotech show 3.6 approx. after a run.
what voltage do you read after a run ?

by the way, some infos here : http://www.rchelicopterfun.com/rc-lipo-batteries.html