Just go to google maps on your G1 - perform a search ad go to say...... New York, NY - zoom in and hit your menu button and choose "Street View" - once street view is set hit the menu button again and choose "Compass mode"
There's a little app in the Market called 'Orienteer' - check it out, it's a cool compass that looks like one and so on, works with GPS. While you're at it grab another one called "Bubble" that gives you a bubble level on your device.
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