Google Maps GPS buggy iPhone 4

I have an iphone 4 that when you try to locate yourself in Maps the blue dot will show that I am nowhere near my location. It also will not track my movements, it just stays still. Some times the blue dot will hover from one location to another and not make up its mind and then just throw me in the middle of the Gulf of Mexico. I reset network settings and sometimes this will work for about 10 minutes, then its back to the Ocean. I even used this this weekend when I landed at various airports in the country and the dot showed me as being about 5-20 miles away from the airport. An improvement, because at least Im in the correct city, but no even close to the correct location. once in a cab i tried tracking again and of course nothing. just the wide area halo pulsing and no movement.
I would also like to mention that I switched over to Edge network and this cleared things up, but in 3G I just cant get the maps, location, and compass to do what they are intended to do.
Any Thoughts?
2x Quad-Core intel Xeon Mac Pro Mac OS X (10.5.8)