I haven't read the forums recently regarding GPS and mapping. I hope this isn't a big repeat.
I was working with someone that had recently gotten this phone, and he showed me how googlemaps locates him on the map. I said that never worked for me. I downloaded the new googlemaps, 2.2.3, and it works for me now. Not super, but it makes for a cheap nav system.
What you're probably getting is triangulation, not true GPS. Some people have had limited success in using applications that hook into the GPS radio of Verizon devices, but only when VZNavigator is running in the background.
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With Google maps you will also see a message that says "Your location within (usually 700 to 2500) meters, depending on your location to the nearest cell towers. Sometimes the tower will be very close and your location is fairly accurate, within the margin of meters noted above.