I ran into the same thing. GPS was working great with Navigon turn by turn.... then after 3.0.1, no dice - could barely get a lock and if it did it was intermittent.... restarted, still didn't work... I restored to factory state with 3.0.1 and still had the same issues - GPS was intermittent at best and would not track properly. I went back and restored to 3.0 instead and all seems to be well again....(if on windows, hold shift while you click on restore in Itunes, it'll ask for a location of your back-up ipsw file... just google for ipsw 3.0 for your model of the iphone.... I have a 3G 16GB.).