I've waited a while to post this, to make sure I'd finally exhausted every option to make the iPhone 3G GPS work. Tested: 2x black iPhone 3G 16GB models (my wife's and mine). Software tested: 1.) Maps. 2.) G-Map West I'd always thought the iPhone 3G wasn't very good at its GPS locating. The blue dot will stop for a bit, and then move on, and then stop for a bit, and then move on. Sometimes it will work for a bit, and then stop again. My location will bounce around sometimes, showing me in the wrong place, and then just "transporting" the blue dot to the right place moments later. Other times, the maps simply won't update my location at all. I finally decided to splurge on the G-Map turn-by-turn navigation software in the hope that this would fix the issue. It doesn't. It has the same problems as Maps! Works for a bit, then stops, says I'm in the wrong place, doesn't update etc etc. I really do think the iPhone simply doesn't have a strong enough transmitter for its antennae, including the Bluetooth chip. Even just in my Griffin Elan Form case in my pocket, Bluetooth crackes a ton on ALL my BT headsets. I have to clip the phone to my belt to actually get a clear signal to my headset when the phone is in a case. You can be sure, if there's a new iPhone in 2009, it will fix these issues. This is probably why developers haven't jumped on the turn-by-turn bandwagon yet. Don't you think that almost a year of no working software is peculiar? In any case, I'm sort-of bummed. The GPS is useful in a pinch, but should NEVER be relied on. My wife and I were furious this past week in Seattle when our iPhones just didn't work the majority of the time.