YES you can recharge NiCad in your MP 130 or 120 .
Only use NiCad Batteries Do not Use NiMH The reason is that those cells require charge characteristics that are much different from what NiCd cells require. The charge circuitry of the Newton 110 / 120 / 130 models was designed for charging NiCd cells and can't provide these charge characteristics. Ignoring this would mean the NiMH cells would never be charged in a way required to maintain their optimal perfomance, and there is a more-than-average chance that they would be harmed over time.
Now here is the trick. The origional newton battery pack was basicly 4 cells connected by a metal band around them. This when put into your message pad pressed down a little button located in the bottom of the battery compartment. This told the newton that it had recharagable batteries in it. So you need to put a peice of tape over this button to hold it down so the newton knows that it has recharagable batteries in it.
Get yourself four NiCad AA size rechargeables. These are the standard ones you will get just about everywhere. Try to get cells with as much capacity as possible. 800 mAh to 1000 . Do not try to save some measly cents by not buying the highest capacity cells you can get your hands on, the additional time those batts will power your Newton more than outweighs the marginally higher cost.
NiCad rechargeable batteries suffer from an effect commonly called "memory", where if the battery is partially discharged, then recharged, it reachs a point where the perceived capacity of the battery is that level to which it has been draining to. If the battery is fully drained periodically, this effect can be minimized or eliminated.
So run out get the best NiCad batteries and tape that button down and go to it.
Now if you want to use HiMH Batteries use an external charger and you are fine. Radio Shach can sell you a set of 4 aa HiMH batteries high capacity and a charger for about 30 bucks as a kit. Also HiMH do not suffer from memory effect like NiCads do.
Hope this helps
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