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Either you are in GPS simulator mode or you are unable to receive satellite signals. go into your tools menu Tools > Settings > System > "check if GPS simulator is activated". De activate if it is and your unit should work fine, if this dosent work try giving the unit an update using Garmins WebUpdater software it can be obtained from this link http://www8.garmin.com/products/webupdater/howtoinstall.jsp.
The consumer type GPS has an average best accuracy of about 30 to 50 feet at any location. This is as long as it can have good reception from 3 satellites or more with no reflections. In the city there can be some reflections that can also contribute to errors.
When there are many turns along the route, some of its error rate can be accumulative in its caculations.
When the GPS is making calculations it is active on its results from the activity that is going on in the background of its operation. Sometimes it may see alternative combinations of possible routes and it may be sampling from these extra combinations, and then re-calculating. This can cause some changes in its calculations while on route which will look like some instability.
What the consumer maping GPS is good at is getting you to the location. This it should do this to within about 30 to 50 feet accuracy after the route has been completed. The GPS system works on a global basis. When considering the span of all of this and the distance to the satelites, this is feat in itself that it works!