IPod Touch 5th gen - GPS Very Vague / Not Working Well at All

I've been trying to use the NavFree GPS app on my new iPod touch 5th generation. 
All I can say is that it sort-of works - in so much as it displays the vague vicinity I'm in within a few streets, however most of the time it just seems to be constantly hunting around for a location and is useless in the car for actual real-time directions - which seem to be randomly thrown out every now and then.
I've tried locating it in numerous places on the windscreen and on the dashboard but it hasn't made any difference whatsoever.  Also when using it out in the open in walking mode, it will locate me for a moment then will wander off again and will start to show me standing in numerous different streets and places nearby.
I'm very disappointed at the moment because I purchased the full version with all the extras thinking that I've solved my sat-nav needs, but it's unusable as it is.
Can anyone help me with fixing this?
Cheers.

The iPod touch does not have a GPS radio. For location it relies upon the locations of nearby wifi routers that are in Apple database of routers and their locations. Thus, this app/the iPod alone without a real GPS accessory, works very poorly in a car since it really can't see may wifi routers and without a internet connection, can't access the Apple database to try to locate new routers that it finds.

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