My dad has this issue on a new up-to-date Samsung Galaxy Ace 2, and read all of the above. We have "Enable Current Location" and "Auto-refresh" switched on, and location services all off. It DOES NOT work, it cycles quite quickly through a his 3 selected locations, which is not what he wants and driving him mad, and now me, what is going on??!?!
What is the scroll function that previous poster Russell Ng is talking about, I don't see that setting, but sounds like that is what is happening.
I am an Android user having had 3 HTCs, none were this useless.