Scroll to cadence, hold down select and see if WATTS dissappears or reappears. You want it to reappear. I would guess that it might be in CPU only mode. If that’s not it, give Cycleops a call. They are very helpful.
Have you zeroed the torque? Press mode until it’s selecting the wattage line then hold select and wait for the number to drop to zero, then release select and hit it again. Not sure if that’s your problem, but it’s helpful for low level problems at least. As far as the higher speeds you’ve been registering, I’ll second the replace the battery in the hub idea. Also, if you’re on a year or two old basic powertap or powertap pro and rode in a lot of rain, that can drain the battery if you don’t open up the hub’s battery panel and let it dry at least over night (although CycleOps told me specifically NOT to use something like a hair dryer to speed the process).
There, all of my acquired PowerTap tips (at least from my year old PowerTap Pro) in one place.
I had a similar problem recently, with my PT2.4(old),which was due to the bearings in the hub. I was out of warranty and although SARIS could have repaired it, they didn’t want to as they are trying to phase out all the older models. It was cheaper to upgrade to a newer version (black hub), which is lighter and more waterproof.