I know the answer to fix your problem. Every person I know with an android device thinks their compass doesn't work until I show them how to properly calibrate it, then it's 100% perfect. Waving it in a figure 8 pattern isn't the answer. It sounds weird, and it's hard to describe, but believe me it works. I can't remember where I read or saw it, so I just have to try to describe it.
... 1) In the compass app while just looking at the compass, not in the calibrate option, hold the phone flat, parallel to the floor.
2) Then tilt the phone to the right 90 degrees so it's vertical and the left side is on top,
3) then from that position, tilt it to the left 180 degrees so the right side is on top,
4) go back to flat/parallel to the floor
5) tilt 90 degrees on the other axis so the top of phone is on top
6) tilt 180 degrees so bottom of phone is on top
7) return to flat, and bingo, the compass is perfect down to <1 degree when compared with a traditional compass. Try to do all those steps without pausing between, at a medium pace.
I was pretty amazed and relieved when I first did it because I actually use my phone as a gps for hiking off trail and it needs to be accurate. It may need to be done every few days as it does drift out of calibration for some reason.
