I seemed to have a similar problem a few months ago. I think there is also confusion as to the "location" settings -- there doesn't seem to be one setting that

I seemed to have a similar problem a few months ago. I think there is also confusion as to the "location" settings -- there doesn't seem to be one setting that turns off all location querying ability, so you can have "use wireless networks" on, and "enable GPS satellites" off, and it still works, but the application calls it GPS (and the icon looks like a satellite). I think it cleared up for me when I turned on both location settings (use wireless networks and enable GPS satellites). I have not noticed a significant drain on the battery due to having both on, but I rarely use location based apps anyway.