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No this is a road navigation only unit. For a cheap entry level GPS that you can use for Geocaching, take a look at the Garmin eTrex series. For a top of the line, consider a GPS60csx or the new Oregon series from Garmin.
The direction of the boat symbol is depending on the compass course from the autopilot. You will see that your GPS course (COG) and magnetig heading on the autopilot differs. Solution is to calibrate autopilot compass. Will advice you to not use course up, stick to north up or heading up.
This is normal! The compass looks like this in "course pointer" mode.
When you're looking at the described compass screen, press the lower left button and notice the line "bearing pointer". When you select that line and push the front joystick, you'll notice that the compass needle is "normal" again . And when you push the lower left button again, you'll see that the line has changed into "course pointer". Pushing the joystick again toggles between those two modes. The shifted needle indicates how far you drifted from the course that your route follows. See page 31 of the English manual for details.
New version of software (8.010) takes the compass preferences away. Compass always pointing north is available through the status bar settings. Found this on tomtom support under question, "How do compass settings work?" It has both new and old versions of how to access the compass.