Google Maps and Skyhook - doesn't work as expected; it works better!

Hello all and thanks for taking the time to read this. 
I was under the impression that when you pressed the Locate button in the Google Maps application that the iPod took the MAC address of the WiFi Router it was connected to and then polled Skyhook's database to get the Lat and Long of that router. After this the Maps application would also download appropriate map images to display underneath. This is all well and good however today I noticed that without connecting to any router Maps was able to track my position as I walked down a residential road with only encrypted home WiFi connections available - none of which could actually provide me with an Internet connection. Whilst I can see that the iPod could obtain the MAC address of these routers as I walked past I'm at a loss as to explain how it managed to turn this into the Lat and Long which was being displayed as a blue circle. I know I hadn't connected on a free WiFi connection as the Map images didn't update.
Does anyone have any explaination?
VMT
mrtotes

Thanks for all the replies. 
I went to watch mrs totes play a Netball match on Saturday, somewhere I've never taken the +iPod touch+ before. It could see two encrypted networks and pretty accurately determined my position. As you can see only a certain amount of cached map image data was available. The fact that it still found my position spoiled my only theory that the iPod might cache a local MAC/Lat/Long table.
Here are some images to illustrate:
I guess you are suggesting that it downloads and caches a table of a certain radius when you determine your location and have an Internet connection. Interesting. I'm driving to 40 miles to Bristol tomorrow once I get they I'll see if I can determine my position.
cheers
mrtotes
P.S. They won 31-16 and mrstotes was 'man' of the match.

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