Since 1.1.3 I think the Google Maps Application on the iPod Touch has supported the “Locate Me” functionality. Today was the first time it worked for me! Remeber that I am on a Touch so therefore this is all based upon the WiFi signals. I am thinking that due to my collueage with an iPhone having used it here the WiFi signals that he was reciving at the same time when he used “Locate Me” were logged somewhere by the Application.
Here is a snapshot of it locating me! I’m actually on the right side of the Blue Circle but hey it’s pritty close!