I am having a similar problem with location and 2.0.1.
I have an iPhone 3G and with 2.0 software, outside I got the pulsing blue pin and indoors when I wifi it had me in the cross hairs within a block.
With 2.0.1 software, outdoors works the same, but indoors does not. Instead, it find me within a larger range, similar to the earlier post.
Has anyone else noticed a difference?
My guess is that the GPS receiver is still working well, but the a-gps system is not. The a-gps system uses cell strength AND wifi. Cell phone triangulation is not very accurate (thus giving a large possible range indoors), but I think it is still working. Apple contracted a company that mapped wifi basestation IDs to graphical locations. I feel that the wifi assistance is NOT working because the accuracy is lower with 2.0.1 as compared to 2.0 when I am inside.