Tried a method which seems to have solved the problem (I hope). Downloaded app "GPS Status" from Android market.
Then followed instructions as found on this site
(GPS Fix For CyanogenMod 6 On The Nexus One | Android News, Reviews, Applications, Games, Phones, Devices, Tips, Mods, Videos, Podcasts - Android Police), originally advice for Nexus One owners:
Take your SIM out of the Nexus One
Power on the device
Turn WiFi on
Turn GPS on
Open application: GPS Status
Go into its Settings menu
Click on GPS and Sensors
Click Manage A-GPS state
Click Reset
Click Manage A-GPS state again
Click Download
Now put your phone on a stable, straight surface in order to enable the phone to get a lock. This time, you’ll see your phone get the lock back way faster than before.
With that done, now it’s time to put your SIM back in and use the network to secure a quick GPS fix as well.
As I said this has worked for me so far. Let me know if it helps any of you