apple app store iphone 4 home screen
Does any of the other location based stuff work? Can you take pictures around town and then look at the new "Places" tab in the Photos App to see if they are placed (red pins) around town where you shot them?
You could always perform a full restore. Be sure you have a recent backup, then do a restore from within iTunes (Summary tab) to return the iPhone to an out-of-box condition, then restore to your latest backup. This should hopefully work. If not, there could be an issue with the GPS itself.
apple app store iphone 4 home screen
apple app store iphone 4 home screen
apple app store iphone 4 home screen
apple app store iphone 4 home screen
apple app store iphone 4 home screen