I teach a camp where we make interactive stuffed monsters with the Lilypad Arduino USB. I am having a problem where as soon as I plug in a lipo battery, the Lilypads start smoking. I have taught this for years and never seen the problem.
I know it is not a short circuit because the projects work fine off of the usb cable and computer. I am using a 3.7V 500mAh Lipo battery. I can then still run the lilypad again off the USB but it looks like it fries a component where the battery circuit will never work again. You can see the IC near port 11 bubbles up.
Is this a manufacturing problem? Is there a code issue?