With the latest update to google maps, it removed the navigation icon, if that's what you mean. As far as GPS not working, try restarting the phone (power it off and back on again). Failing that, try using the free app, GPS Status as it sometimes helps to 'kick start' your GPS and GPS lock. Failing that, I had to do a factory data reset once (on my brand new Motorola Droid) to get GPS to start working.
As teddyearp pointed out, the latest update removed the blue navigation icon, but navigation is still available with the latest version.
Have you tried opening Google maps and tapping the location icon at the bottom right? Although you may have enabled GPS in settings it doesn't become active until a location app is running.
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