normaly you can track any mobile phone.
I can for example log into my provider and look in a map where my mobile is located (is not necessary to be a BB, works with every mobile).
The provider can see the exacte psotion because you a locked into a special mobile cell and therefore the know where you are.
Normaly, you must agree to this otherwise its not allowed (in Germany, maybe in other countries it is allowed).
Without GPS, it tells me my location within a mile or so using the included Navizon technology. I don't think it's interpolating. My guess is it's figuring out what tower it's closest to, and looking up the tower location in an online database. I just made that up. Navizon can also locate you on the basis of your wifi connection, if you're connecting through a wifi device that's in their database. This is a really nifty application by the way, and it includes GPS functionality and has some neat peer-to-peer location concepts, but it sometimes crashes my 8700.