FM transmitter blocks GPS?

Hi
I recently bought an FM transmitter/charger for my 3GS. Works fine in car until I try to use GPS for my navigation app. GPS will not fix location until FM transmitter is unplugged (which means the charger has to be unplugged as well.
Does the use of an FM transmitter always block the iPhone's GPS capability, or is it just the particular version I have bought (it's one of those that plugs directly into the foot of the iPhone, charges through a mini-USB socket)? If anyone out there is successfully using an FM tramsmitter with iPhone charger and GPS simultaneously in-car, what kit are you using?
Thanks

I've had similar issues with my Flexpod Car Mount unit, though not as severe as you describe. I just tend to get frequent hiccups in signal, but it usually catches up to itself. I think it's an inherent issue with transmitters and the FM range interfering with location services.

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