Hi all, same problem here.
On Tuesday night (13th Dec 2011) I checked my phone for the time and it said 21.20. I knew that couldnt be right so I went into the clock settings and my time zone said Baghdad!!! I live in the UK. My cell provider is O2 UK.
If I turn off Automatic time and put London as the time everything is fine. So I thought I'd check the Maps App and its locating me in Baghdad. Ive tried the Compass and Google Earth and they all had me located in Baghdad.
Today its been locating me in Sao Paulo.
I use the Maps and Location for work every day so its a massive problem for me right now. My wife has a iPhone 4S on Orange and shes locating fine with no problems. Also my best mate has an iPhone 4S on O2 like me and never had the problem.
What is going on??
Ive reset the phone using the Home and top button but its still the same. I've also tried syncing it iTunes and restoring the phone but still no change. It may work for a couple of hours then all of a sudden Im back in Baghdad again.