I wish I had a digital camera to show you this put it looks like battery acid came out of the battery and dissolved the nut which hold the terminal screw onto the -ve side of the battery.  It is about 80% gone.  Only about 1 thread left holding the screw.  

This happen to anyone?  I noticed the cell under the terminal was just under the min line whereas the rest were at about the middle.  What happened?  Did it boil over for some reason?

Is this battery pooched?  I never noticed any electrical problems at all.  I was working on the bike to check the shim clearance, and noticed all this white foamy stuff with bits of metal in it.  I just cleaned it up, filled all the cells with distilled water and recharged it.  So I guess I'll see if it works and keep an eye on it.

was it a replacement battery? some cheaper battery companies use recycled lead for their terminal posts, since the lead still has impurities in it, eventually the acid gas from the battery eats away the metal, and what you see is the result... i see this type of thing on aftermarket car batteries a lot

I'd suggest you buy an interstate battery... they use virgin lead. This is one reason why they cost a little more. (no, I don't work for interstate, just deal with a lot of batteries)

Nope, it is the original battery.  The terminal seems fine, it was just the nut but maybe the terminal has degraded which is allowing the acid to get out.  

Do you happen to know how long the battery might last?  I have not done a SG or any other tests.

you'd really have to either load test it or use a hydrometer to know what sort of shape it's in... but IMHO... a battery shorting under your ass is not pleasant... i'd get rid of it at my earliest oppurtunity. or keep a cell phone handy...

Yes atleast 3 times that i can remember... my KZ 440 recently had the whole post twist off into powder when I went to unscrew it.
Cool.
Srinath.