"Unless someone can look into an iPhone and read the exif data directly off the image that is stored on the phone then we don't know if the issue is image capture/iphoto changing the tags or if the phone writes them incorrectly - personally I rekon it is the way the camera application uses the location services."
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Here’s a simple method to test if this is an iphone problem or a non iphone problem:
Go to the App Store and download “Airme”. It’s a free iphone app that allows you to take a picture and immediately upload it to flickr or the airme.com website. It is useful in that it includes the EXIF information with the lat/lon. So, whichever photo upload site you use, the photo will arrive with the lat/lon that the iphone tagged it with.
I just used airme to take the linked picture, and as you can see (there is a map link in the lower right of the flickr page), it was geotagged by iPhone with the correct lat lon and the correct lat/lon REF tags. (I am in Los Angeles. . . you can see exactly where by looking at the map)
http://www.flickr.com/photos/dgalvan/2675407490/
This is evidence to me that my iphone 3G is geotagging correctly, but that some sets of software used to edit an imported iphone photo (definitely iPhoto, perhaps others as well) can screw it up. Geotagging has been a somewhat niche activity up to now, and there are many photo programs that are not friendly with geotagged EXIF data, but have gone unnoticed because few people were worrying about the lat/lon tags.
Brendan, could you perform the above mentioned test and see if your iphone really is geotagging incorrectly? So far, I am more inclined to believe it is the photo editing software we are using which is causing the problems, not the iPhone itself.
But I suppose it's completely possible that some iphones are geotagging correctly, and that others aren't. There is still my #2 hypothesis up there: Has anyone seen an iphone EXIF lat REF tag that is South? Or does it always tag N for North? (Being in the northern hemisphere, I can't test this.)
P.S.: this airme app is pretty cool. . . did you notice the flickr tags for the image? Those were all added automatically by airme. I guess it takes your location, including city, state, country and current weather, and automatically makes tags!