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Map location errors on iPhone 3G caused by 3G network?

I was very puzzled when my iPod touch could locate me within 20m indoors whereas my iPhone 3G indicated I was 200km away. When I was outside A-GPS activated and the location was correct. If I turn off all cellular networks (airplane mode ) and use my wireless network then the location is correct. Also if I turn on GSM only and leave 3G off then again the location is correct, however as soon as I turn on 3G the location is completely wrong. Given I believe with the cellular network turned on the iPhone uses cell towers for triangulation it would appear there is a bug somewhere or maybe the 3G signal is interfering with the triangulation. This is on the Optus network in Australia.

Is anyone having similar problems. I have software build 5A345.

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