Location service only after initial Internet connection possible?

I have been to Budapest, Hungary last year. My iPod Touch 2G could not find my position although there were tons of WIFI networks around. I found an open hotspot in a café which was run by the town council. After connecting to it (and later without any Internet connection again) iPod found my possition at any place in the town. It was the same in another (German) town: I needed a short internet connection via a free hotspot to get the location service work.
Does the iPod download some sort of location data when I am far away from home?

Yes, you'll need to join a WiFi network before the location service will work properly. See this article for more interesting info about location service. http://support.apple.com/kb/HT1975
...Notes:
iPod touch only uses Wi-Fi for Location Services (if a Wi-Fi network is available)...

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