I found this on another forum and if it is true, its what I feared as the worst scenario.
quoted from XDA
I could be wrong, but I suspect that there is a hardware problem. The GPS chip reportedly is new, a combo chip from Broadcom that handles Bluetooth, FM and GPS, as well as media processing. That Broadcom design, which is supposed to offload some of the GPS processing from the phone's CPU to the combo chip, could have internal problems. Or Samsung could have designed the surrounding circuit wrong. Or the manufacturing QC could be flaky. The
symptoms reported from testing different Galaxy firmware versions indicate that Samsung engineers may have been trying to work around some inherent problem in the hardware by buffering, interpolatation, etc., of the GPS outputs. And the reported symptoms come and go mysteriously over time. If the underlying output from the new chip is unreliable, no software miracle can truly fix it. But Samsung might succeed in faking out most of the people some of the time, and some of the people all the time, with a software workaround.
I am not so sure that Samsung will really be forced to make this good in the marketplace with a recall. So far, as a PR matter, the manufacturer is amazingly unscathed by the GPS fiasco. Search Google news and you will find only a couple of minor online trade-press articles that even mention the Galaxy GPS defect. And all the lazy "reviewers" never really get past the first impressions and gee-whiz over the screen. They don't get out and do real field tests of GPS apps. (I agree that, absent the GPS problem, the phone is stunning. But a defective GPS on an Android is a deal breaker. GPS is core functionality that has to just work.)
Mines going back!