Did your GPS work once? Is it just crap now, showing wrong locations, not moving at all? Is your wifi signal weak or dropping all together? I had this problem after dropping my phone at a friends after one to many beers. I didn't notice that night but best believe that next morning I knew something was up when I was right at my desk (at home) next to my wireless router and I kept getting either weak signals or none at all! I figured that it was just low speed so I shrugged it off and went to work. Well when I opened the maps app my GPS was all screwy! What I mean by this is that it wasn't doing **** for me! It kept locating me in an unknown spot and the little blue dot wasn't pulsing. Not only that it didn't track any of my movements. Then I knew the drop the night before had something to do with it. Still skeptical about any hardware issues I searched the internet high and low for answers but found the same thing over and over. reset network settings and go outside, find open area with no trees... yadda yadda bla bla bla!! That's all fine and dandy if you're having a GPS update issues but not for I and a whole lot of others! So I researched how to open this bad boy (iphone 3g) and take a look inside thinking that it may be hardware issues and low-N-behold... yesir!! here's what i did...
First learn the correct way to open a 3g (suction cup) without breaking anything. Just google it.
Next once you open it up notice that there are little orange stickers with numbers on them. YES apple was nice enough to label some stuff for us though I have no clue what the hell any of them are, but rest a-sure they are numbered.
Now look at the top left corner, there should be a little round labeled piece numbered 6. I pressed until it snapped back into place and closed and fired her back up... and BINGO there's my pulsating blue dot.



When I connected to my network here at home it was stronger than ever!
I REPEAT the little round piece labeled 6 at the top left corner was lose so I just snapped it back into place and every thing was good once again! Try it out but be careful opening your 3g the front is attached to the rear piece. GOOD LUCK!

<------- that's me now!!!