How to Fix iPhone 3G GPS issues. According to iPhoneAtlas, Some users have reported in an issue in which the iPhone 3G’s A-GPS unit fails to properly discover physical location, they are complaining of inaccurate GPS positioning when the 3G data setting (Settings>General>Network>Enable 3G) option is switched to ‘ON’. If you need to have accurate GPS positioning information, You may try to fix this issue with a simple trick:
1. First toggle the 3G data setting to ‘OFF’
2. then you can locate yourself using the iPhone 3G’s GPS receiver
3. if done, back to toggle the 3G data setting to ‘ON’
(via iphoneatlas)

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