The Dream has notoriously bad battery life but the indicator can get confused.
Might do a battery recalibration to make sure the phone doesn't make matters any worse. A quick googling will show the step-by-step.
If that's not it eBay has double-size batts/covers for about $10 shipped.
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Optimus T
CM7 + Zeam
TMo PAYG (no data). How I use it.
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