It answers my question except that my battery sometimes when fully charged reads 3.7 volts and that's when it is using its auto detect settings mode. So I don't know how to properly use this battery... the manual explains the buttons but not what I need to know
Are you sure you are not confusing the auto-detect mode as to what it's outputting rather than what the battery charge level is?
They are two completely separate things. When you charge your battery it will be 'full' at a specific level (4.2v in your case) you can output more or less than this 4.2 volts to the atomizer. The battery will do this for you using a voltage regulator to output between 3 - 6v. This means the circuitry in the body of your battery is either increasing the voltage or decreasing the voltage - and this takes power from the battery.
This output voltage has nothing to do with the charge of your battery (well it does, but for this example it doesn't). So if it reads 3.7v, it's telling you it's outputting 3.7v to the atomizer and not that your battery is at 3.7v charge.
Make sense?