IPhone 3GS GPS

Hi,
The GPS on my iPhone 3GS appeared to stop working. I traveled overseas recently and tried to locate myself with Maps app, and it failed to locate me. (I had cellular off, Wifi ON, LocationServices On, 3G off). The compass app also shows the previous GPS coordinates and never updates to the new location I am in at the moment.
I have tried rebooting my iphone numerous times, resetting network settings, resetting location services, tried different GPS mapping application, tapping the iphone against my hand, standing outside the house hoping to catch any GPS satellites, tried different combination of cellullar/3G/Wifi/LocationServices on/off states, and doing the steps that others suggested (after Google-ing) - all failed to provided me with a working GPS.
If I read "support.apple.com/kb/HT1975" correctly, then when I switch off both cellular and Wifi, iphone 3GS should be using the internal GPS to pinpoint me.
But, according to "support.apple.com/kb/HT1355", the GPS module is switched off if I switch off cellular...which contradicts the KB above..
I tried switch on & off cellular, but my GPS coordinates (as displayed in Compass app) remain wrong. Anyone has similar experience ? Do you think my iphone GPS module is faulty?
Any suggestions would be grateful. Thanks.
Information:
===========================================================================
"support.apple.com/kb/HT1975":
"If you're not within a clear line of sight to a GPS satellite, iPhone 3G and iPhone 3GS find you using Wi-Fi. If you're not in range of a Wi-Fi hotspot, iPhone can find you using cellular towers."
"support.apple.com/kb/HT1355":
"When airplane mode is on, [icon] appears in the status bar at the top of the screen, and no cell phone, radio, or Bluetooth signals are emitted from iPhone (and GPS is not available)."

Same problem here. On a trip abroad the GPS AND Compass completely stopped working. It worked for 7 days abroad before malfunctioning. It has been working flawlessly since I bought it 7 months ago. I´v tried all of the above measures and some more. At times the compass flickers around for a second before locking at Zero degrees North. Maps works as long as i dont try to locate myself. Then the blue haircross-button starts with the "spinning-Wheel" of loading, and just keeps going.
I´ve also noted that since this issue started last week the phone drains the battery a lot faster, even when I´m not fiddling around alot. I did a test some days before this issue and reached 20% in more than 5 days (>120h)!
The only test that I´ve read about and haven´t tested is the "rm -rf"-command witch requires a Jailbraked phone. I argue that I shouldn´t need to jailbrake it to get it to work properly.
So? Is it hardware or software?
Glad for responses.
Wisconxin, did you get it right?
/G

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