Make sure that you are outside with a clear view of the sky, this is not a must, but it can help. Go to setting, general, now turn on the location service.
I found this on the web, it worked for me, give it a shot -
Rebooted. 3G on, WIFI on, connected to AEBS: Actual location: Memphis, TN, iPhone says Stamford, CT, with no GPS lock. Turned 3G off, WIFI on. Location is within the right area now. No GPS. Turned 3G off, WIFI off. GPS works.
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The 3G is a bit thinner at the edges and includes a headphone jack that is flush to the side.
. The iPhone 3G differs from the iPhone in that it used 3G networking and included built-in GPS for expanded location based mobile services, and new iPhone 2.0 software, which included support for hundreds of third-party applications that were built with the iPhone SDK
One of the uses of the iPhone’s Map application is to get driving directions, right?. The starting point and destination point fields offer the Bookmarks button, you can quickly use a bookmark, recent location, or contact when searching for directions. For me, the first thing you should do in Maps is to find your address your own address and then bookmark it—this will make finding directions to and from locations as easy as tapping your home bookmark
Do you have wifi or 3g connection? If you are using GPS, it doesn't require a connection, it relies on the satellites. Try running an application that runs on GPS like N Drive for iPhone because the default maps application requires that you be connected through wifi or 3g.
You can send all your data over GPRS by simply switching off 3G (HSPA) in Settings > General > Network.
If you're talking about GPS (Global Positioning System), you can activate it by enabling Location Services in Settings > Location Services and then opening the Maps application and tapping the small arrow in the lower left corner to zoom in on your location.
The iPhone does not come with turn by turn navigation software, you have to purchase that separately.
Make sure you have the iPhone 3G, or newer, because the original iPhone did not have GPS capabilities.
Also, make sure you are in a open outdoor area, (not crowded with skyscrapers)
Go in Settings > General > Location Services and make sure you have it turned ON, as well as all the other apps in the list underneath.
Make sure your phone is not in airplane mode.
Go in the Maps application and press the compass arrow in the bottom left corner. It should locate you on the map with a blue dot.
Try turning off the 3g. a lot of gps programs use the wireless gps, which just isnt as accurate, but the satellite gps gets interfered with by the 3g on the phone. Also, go to location services under settings on the phone, and make sure its turned ON for golflogix.
yes you can jailbreak your iphone and upgrade to firmware 2.2 this will unlock your iphone to any sim card and shoud enable your gps again ask this bloke at the link click here he is a genius with everything to do with iphone's
G1 Gps Problem Fix - I recently had the same issues with the gps giving me the location of cell towers instead of actual location. After looking around the forums, i found the fix and it worked. Clear you maps cache by going into your application data. Settings : Applications : Manage Applications : Maps : then push "clear data" Make sure both your wireless and gps are turned ON Turn off Phone Take it outside somewhere that is clear of obstructions (like a large parking lot, or field) Turn on phone Once on, press maps Let it sit in one spot for about 5-10 min, then press my location. It should find you in just a few seconds. Mine took about 30 seconds. This should fix most problems you are having.