The iPhone update is causing GPS problems
Apple have upgraded their OS to version 2.0.1 but apparently this is causing problems for some iPhone 3G users. The main issue seems to be around getting a reliable lock on their position. Before the updated OS was released you could turn off 3G data which seemed to help some people.
This quick fix might work
* Navigate to Settings>General>Network>Enable 3G and toggle to “OFF”
* Locate yourself using the iPhone 3G’s GPS receiver
* Navigate to Settings>General>Network>Enable 3G and toggle to “ON”
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