I agree about getting yourself some Lipos, but if you cant afford it right now and you have the two Nimh packs you might as well use them to their best capability. If one of your Nimh packs is physically bulging you should discontinue use immediately and find a place to recycle it.

When peak charging Nickle cells, the voltage will peak, then begin to drop as it is over charged very slightly. "Delta Peak" or "Peak Detection mV", are a few names for the setting that adjusts how much the voltage drops before the charger shuts off. Nicds like a pretty heavy over-charge(8-20mV/per cell) and seem to run better, plus the voltage varies so much during the charge that it would false peak with too low of a "peak setting". Nimh, on the other hand, like as little as possible voltage drop upon peaking(3-6mV/per cell). This low of a setting leaves little room for voltage fluctuation during charging and will stop charging anytime the voltage drops that amount. If your cells are not damaged in any way they should come around and begin holding a steady enough voltage during charging to not trip a false peak, after 3-5 cycles maybe more if they have been sitting unused for some time.

Now that I have covered peak detection, Ill tell you how to get the proper setting for your packs. The proper way to monitor the pack is by temperature, terminate charging when pack temp reaches 125F. If the charger shuts off before the pack is 125F, the setting should be turned up. If the charger is still running and the pack exceeds 125F, the setting is too high. To simply eliminate the false peaking, you should try to turn up your peak detection a few mV. But you have to be careful not to overcharge the pack! Packs that have been sitting unused can fluctuate alot during charging and need a higher peak setting to avoid the false peak, but the higher setting can overcharge it in the end when it really does peak. You should be able to find a sweet spot where it will take one charge to get perfectly full. Monitor the cycles closely the first few times to ensure you have it correct and you should get a long happy life out of your pack(s).