I would like to know if anyone else is experiencing issues related to location services settings. Ie; they are on but maps cannot determine location etc.

I recently experienced an issue on my ipad2 related to location services. While connected to a wifi network, I found that apps requiring location services would not work properly and I would receive a pop up notice asking me to turn on location services.  For example, the maps app would display a pop up stating "cannot determine location". My NHL gamecenter app would not allow me to watch live feeds; a pop up advised me to turn on location services. In each case, location services was in fact on.
I checked my settings, shut down the apps, restarted them, shut down the iPad and rebooted it to no avail. The internet connection was working fine as best as I could determine. The wifi network was at a guest home and the router was recently replaced. I returned to my home wifi and everything worked fine. The next day, I returned to the guest Internet connection and everything seemed to work once again. However, while watching a NHL game, during the last seconds of an overtime shoot out, I lost video and it was attributed once again to location services being disabled. Of course I checked and nothing in my settings had been altered. I went to my iPhone (3GS) and pulled up the gamecenter app and was able to watch the end of the game( via wifi connection...same network).
So, I am puzzled as to what could be causing this problem. If anyone else is having similar issues, I would like to know as well as if there are any solutions or feedback from Apple regarding this type of problem.....Dave.

As the King says, if your friends wifi router was relatively new, it likely has not been picked up by Apple's location based information database system and thus there is no location information associated with it.  So your iPad had no way of getting its location.
The wifi location databases are traditionally updated by wardriving - literally companies employ people to drive around sniffing out active wifi signals and associating an approximate location to it.  Some companies also have web sites to submit that information if owners wish to (Apple does not seem to have one though), and the various companies with wifi location databases buy and sell their information.  Bottom line is though, it can take weeks, months or sometimes even longer for a residential router to get picked up - depends on where you live (more rural, likely the longer time it takes).
When I moved from VA to NC it took up to 6 months for mine to reflect my new location (I checked it once the week I moved in, and then periodically thereafter, and it finally was getting it right after about 6 months) and I live in a pretty densley populated area (triangle NC).

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