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Iphone 4, iOS 4
To be honest I have to say that it is highly unlikely it is anything to do with picking up GPS signal in your case (GPS is, with rare exception, an OUTDOOR facility) - I guess you might be using wifi in your house and it is probably using your IP address via your router to give a "position".
I had that problem when WiFi is off. Turn it on and the map positioning accuracy goes way up to 20 to 40 feet like you said. Note the iPhone does not use GPS (global satellite positioning) and never has. It uses cell tower triangulation.
I use the GPS on the iPhone & iPad. My iPad is 3G, but I don't use cell service. I only use it for GPS in the desert. There are no towers or any kind of signal, but my GPS still works. It doesn't use triangulation. I bought it specifically because it uses GPS and not triangulation.
Iphone 4 GPS accuracy?
