I found the same problem, it sticks with whatever the first city that it found and doesn't change no matter how many times you refresh, remove widget and re-add. Other weather apps are able to find your location without needing gps turned on so that isn't the problem. I've stopped using it and have gone back to the weatherbug.
Originally Posted by yabadaba
No, "Use GPS satellites" is switched off, but "Use wireless networks" is on so I thought it would use that. When I force it to update, via "Add city" and then click on the location search button it finds where I am correctly, so I thought that it would use that functionality to auto update.
NB: Didn't have to use GPS for my HTC Desire to auto update location on its weather app....probably not as accurate, but it did find roughly where I was.