You have tested another app to make sure GPS works?
And speaking of other apps, have you tried downloading any other camera apps that can also record GPS location?
From what I have read online....pictures taken with any camera phone have GPS/Geotagging hidden in them.
Pretty annoying process to locate the information hidden in the image, but if you have the time, and run some flavor of linux, here is one way how:
Finding Hidden Metadata in Images - Oh, the Possibilities
