My girlfriend and I did an experiment. We had noticed that while we were each at our respective homes, we were shown precisely where we we were on our own phones. However, on each other's phones we were a mile or more off.

So we went to the mall parking lot. We place our identical MyTouch phones on the car's center console. On my phone, Latitude showed e in precisely the right location. However, my girlfriend was shown being in the middle of a bend in the river, about a mile and a half away. On her phone, it was the exact opposite. She was in the same parking place and I was now a mile and a half away sitting in the exact same bend in the river. What gives?

Obviously, the phones and software know the precise location but are unable to report locations to other phones or even pcs running Latitude software. Why?

Yes

Eric does your GF's phone have GPS and if so, was it turned on?

I guess what Motti is hinting at is that each phone can use its own GPS to show its precise location, but if you haven't set it up to share the GPS co-ordinates, then only the location obtained by cell-tower triangulation is available to others.

I believe that the default setting is to show the "city level" location (Rough location so people don't know exactly where you are).

To change this:
• Go to google.com/latitude
• Add the iGoogle gadget
• Find GF, click view profile
• Select "Best possible location"
(This may be possible from your phone, but I have no experience with the app)

Both MyTouchs have gps enabled and best location set. All settings are identical.

Hello? Still the same situation. All settings are enabled, GPS, Best Location, etc.. I've held both phones in the same hand and get the differing, yet same locations. We are precisely correct on our own phones, but wrong by the exact same degree on each others.