Do you have a WiFi connection when this occurs? If you do then probably a neighbor of yours used to live in NJ and had their wireless router there. Skyhook did their wireless mapping and associated that MAC address with a location in NJ. The person then moved, brought their router with them, so when the iPhone uses WiFi to triangulate location, it thinks you're in NJ.
If this is happening when you've got the actual GPS blue dot though... don't have an explanation for that.
I have no WIFI connection, and I'm not in Jersey lol. I'm in State College, PA.
Will a restore possibly fix this? What does a restore do? Will I lose anything [texts, call history, etc.]??
Remains to be seen if a restore would fix this. Have you tried just restarting the iPhone? Restore just reinstalls the OS. Backup your phone right before the restore and you won't lose a thing. After the restore completes it will ask if you want to restore a previous backup.
ok just checked with a friend. his does the same thing. I tested GPS on Edge and it locates me correctly [not precise but a little circle around], on 3G it thinks im in jersey.