sounds exactly like the 2nd hand transponder we bought last year. someone on this forum suggested we let the battery run down completey (no lights) then put the transponder in its holder for a few seconds to start charging, then take it off and wait for lights to go out, then repeat 3 or 4 times. then let it charge up fully - after the full charge we got 3 green flashes instead of the red ones.
ours still didn't work at the track though - after some trial and error we've found we need to charge up overnight at home, then plug into the car for a couple of days - then its fine (apparently some of them prefer to be charged via car battery rather than the mains, don't ask me why!)
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