Find My iPhone - How Close

Hi,
I'm new to the iPhone (loving it) and am trying to understand how the iPhone determines its location.
I was at home (with my phone) last night and after setting up the "Find My iPhone" feature, the phone was located within an area of several city blocks.
This morning, I did the same thing at my office with a similar result (actually a larger circle). After this test I went outside and made a call and came back in and did a "locate" again. This time the result was a location at the address I was at.
Did the more precise location result from the phone call or from being outside with the phone for a short time so the gps receiver could report a more precise location??
kayjh

Thanks, I suspected that was the case. Is the GPS as sensitive as that found in a Tom Tom or a Garmin unit? In other words, will the unit be able to replace a windshield mounted GPS device with similar accuracy for navigating? kayjh

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