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How To gps accuracy fix!...... maybe

You shouldn't discount this spinning thing too quickly. From the point of view of people who didn't design the device, the auto focus bug being related to time didn't make sense either.

With that said, some GPS units make use of data other than from satellites to calculate it's position and velocity. Some GPS units are known to use internal sensors to help adjust their calculations. An example of this is the use of an inertial navigation system which uses rotation and motion sensors to aid in GPS tracking. So if the Droid does use its internal sensors for GPS error compensation, then having the sensors provide incorrect measurements would affect the GPS's accuracy.

Google Nav app does utilize the combination of GPS position and the magnetometer to properly orient the directional system. Many new stand alone GPS units use this system to assist the user when there may not be a strong sat signal. The Droid also has the added ability to use local cell tower triangulation to give even more info to the unit.

Try this. If your Magnetic system shows as off by some degrees, get in your car and set a location to navigate to. Purposefully deviate from the path selected and you should notice a slight lag in the time the arrow indicator corrects to your current direction. Now try it after recalibrating the magnetometer and it should show your direction as you are turning very accurately.

Mine was off by close to 120' before calibration and within 5' after and the "lag" disappeared after. Just my observation and a bit of research into stand alone vs. pda based navigation.
 
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It's prolly old hat to everyone by now but it REALLY freaked me out (and was more than a little creepy) the first time I used GPS navigation to go home and when I pulled into my driveway the google map switched to a google streetview photograph of the front of my house from the angle I was pulling in with my car in the driveway. Just for fun I went around the block and came at the house from the other way and the picture changed to reflect my new incoming direction.

Glad I wasn't on the front porch in my underwear smoking a cig on picture day!
 
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