None of my maps app use GPS, triangulation only.

Thanks in advance for taking a look at this issue.
I'd like to think I know my way around the iPhone/apple products in general VERY well, but I cannot crack this one.
I am using an 8gb iPhone 3G that I bought about 10 months ago. Running a fresh "default factory settings" restore of 3.1.2 firmware.
I do NOT get any GPS. I have full 3G coverage standing outside, clear view of the sky, and all of that...and it still insists on only using triangulation.
I had the same exact model iPhone on the same firmware in my other hand, and that one was picking up perfectly accurate GPS of the position.
I've tried the bunch of solutions out there
-Turning off location services, restarting, turning back on...
-turning off 3g. opening maps and trying to find my location, then restart 3g...
None of that works. Which makes me think its a hardware problem. Like I said, it's a fresh Restore and still the issue exists.
Is it possible that something could be wrong with the hardware?
If that's the case, I didn't buy an 'extended warranty' or apple care or whatever it is. So now I'm wondering what would they do at the apple store?
Will they replace it at all, or would I have to buy a brand new iPhone for whatever retail is now w/o contract, $399 or something (since I already have a contract)
This is quite the dilemma, so I appreciate all the help you guys might be able to provide!

Certainly could be a problem with the GPS radio in the iPhone. An Apple Store could confirm that. They don't 'repair' them, per se - warranty service means you get handed a new (refurbished, generally) iPhone at the Genius Bar. If you're out of warranty but your iPhone is undamaged, you are eligible for Out-of-Warranty Service, meaning you pay $199 for a replacement iPhone of the same model you have.

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