Find my iPhone doesn't work

After having my first iPhone stolen, I decided to try the app "Find my iphone" on my friend's loaner iPhone 3GS to see how and if it really works.
When I turned it on, I ensured that these were all setup:
- Location Services: ON
- Find My iPhone: ON
- Cellular Data: ON (3 Bars Service at the time)
- WiFi: ON and connected to the router
- Internet utilizing apps: ON and in use
Doing all this, I went to iCloud.com and decided to locate the phone, and test out the Find my iPhone feature.  After 5 attempts to locate and 1 attempt to send the phone a message, it still came up as "No Location" and then "Offline".
I was browsing the internet on iPhone's Safari App, while these "finding attempts" were going on.  What a miserable fail.
Now I'm wondering if whoever stole my iPhone 4S is actually browsing the internet and having a wonderful time while I sit here miserable, thinking that this feature actually provided a service that I could use to find my phone.  Appears to me, through my experience, that this is a total fluke. 
My sister's Droid actually has a phone finding app that works.  It was very disappointing to hear that her non-Apple product topped the abilities of my iPhone 4S.  As much as it hurts, I actually decided that I will switch to that new Samsung sIII in the following week.  I feel like I got jipped by my favorite company

I am having the same issue. I have 3 iPhones in the house and I just lost one.
I hit find my iPhone and it found two of them immediately.
The missing one did not show and said it was offline. I tried to play sounds and I hit lock.
When I finally found it was in the house, full battery, full signal etc and wifi signal. By this time I havd searched other proeprties and got frineds searching for it.
I then put it in the same room as the other one, only a few feet from the router, so absolutely no connection issues.
I hit find it - got offline!
I hit play sound - no sound
I hit lock - nothing happened!
It did play a sound about 25 minutes later!
So karup.meyyappan you are not alone! 
I checked out the troubleshooting page and there was nothing there that I had not tried. I am not whingeing - just want to know what is wrong so that if I do have a serious incident, I am ready!
iPhone4S on ios6 & iPhone 3GS on ios5
Message was edited by: oldmisstreacle

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