See if Maps is running.
Right after I let AppBrain update a number of my apps - it insisted it did, but in reality several of those apps disappeared - my Wifi stopped working, my GPS started behaving as yours is and my battery life got very screwy for a few hours, right down to the whole battery in the notifications not matching the battery itself. I cleared up some/all of it (???) with the How-to and even did a battery pull.
I'm gathering system logs now.
I also noticed that my weather widget (I use the big numbers w/ weather under it widget) was no longer auto-updating - I went to weather by tapping the sun on the widget, then Settings, noticed weather was now set to not auto-update - I put that on, changed the update freq back to the ridiculous default of 6 hours - then turned auto-update off - and things seemed to instantly level out for me.
It's too soon to say if that was coincidental or not until I can study the system log files.
I mention this in the event that it might be related - I believe that weather widget insists on operating best using the towers for location-based weather service and I'm merely guessing that might be related to gps.
PS - In your phone setup, there's a check-box to allow Google to gather your location data for searches and "other Google services."
Rather than hunt for it in settings - that's an app called Settings in your drawer (top hat icon) - you can run that, and skip through everything but that location page. Use that to quickly verify your location options.