Sorry, I didn't see this until now. If your phone is rooted already you'll have to unroot it and possible return it to stock before you can run the update. Mind you GPS was always an issue with this phone so it won't be that big of an improvement. If you mean it doesn't work at all, then perhaps the radio has failed.
If you want to improve your phone and it's already rooted, I'd recommend trying one of the Jelly Bean roms. I can help you with that if you like.
I always had trouble with GPS on my Captivate. I agree with Lunatic though, definitely look at getting a 4.0 or above ROM for it. CM10 breathed life back into mine before I got a GS3.
I have never used Froyo, but is GB really an improvement over it? I have been using a Crappy for a year now on stock 2.3, and the instability has driven me up the wall. Now the phone doesn't even hardly work. I feel like there's no way in hell I could root it at this point without bricking it(it already has hardware issues too).
So my Nexus 4 is shipping out today from Google. Goodbye craptivate.
4.0+ is ICS and JB. GB is tablets only. The Slim Bean ROM on my Cappy is the smoothest, and most stable of any ROM I've used on the phone (stock Eclair, Froyo, Serendipity VII, CM9, CM10). It's also a much better experience for daily use. Battery life is rough though.
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