Is your phone on one of the carriers? It's possible that the update is still in the carrier approval process and that is why you have not gotten it yet.
As far as the GPS is concerned, it's been established that it doesn't track your location well. Do you get the GPS symbol in your status bar when you have the apps tracking? Does it indicate that you have good signal? It seems like your phone is using A-GPS (approximating your location based on wifi signals) and isn't actually tracking you using GPS proper.
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