Does this have GPS or not?

I've been reading some other posts, all about the GPS and A-GPS or Assisted GPS, which basically assists the GPS receiver in aquiring your position quicker. So if that's the case, then how could a position be off by miles? That makes me think that it's not GPS at all, but rather going off cell towers and wifi signals. And what if I'm in an area where I have no cell covereage period? Can I find my position? And a side question, I'm asking all this because I want to be able to find my lat/lon at any patricular place. So I'm curious... if it is a true GPS, then why is there no way (that I have found) to obtain your lat/lon from a native iPhone app? I thought maybe the compass would, but I don't see it, unless it has something to do with the location arrow on the bottom left that does not allow me to select it. And if there is not a way to obtain this via a native iPhone app, are there free ones out there which actuall work? The one I tried was GeoMarker, but that gave me lat/lon at least 3 miles away.
A lot of questions I know, but any help is appreciated.

The iPhone 3GS has a true GPS. Normally, it uses local WiFi and cellular signals to help locate itself faster. http://support.apple.com/kb/HT1975
A company called Skyhook Wireless maps WiFi and cell tower locations it scans. Apple uses this to help your GPS locate itself quicker. Here's how it works: http://www.skyhookwireless.com/inaction/apple.php
If there is an error in the Skyhook data, your phone's location may be off. You can turn off WiFi to eliminate the error. It will take longer for the phone's GPS to locate itself without WiFi, but it should be more accurate.
The built-in compass app (iPhone 3GS or later) shows which direction you’re facing, along with the geographical coordinates of your current location. You can choose magnetic north, or have Compass adjust the declination to show true north. Look for your coordinates at the bottom of the screen below the compass display. If you don't see the coordinates, check Settings > General > Location Services and be sure it's turned on.
Another popular free GPS app is http://itunes.apple.com/us/app/motionx-gps-lite/id293935935?mt=8

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