Okay, you have a couple options
1. Navizon or the latest maps software has the ability to locate you based on cellular service and towers, and also wifi.
2. A commercial GPS dongle will be availiable from Gomite
3. DIY If you search these forums and are handy with a soldering iron, you can find how to connect a serial GPS module to your ipod and use it for basic navigation.
Get Firmware 2.0 Beta !!!
Its has the Virtual GPS feature !
Navizon drains the battery :mad:
My Blog: http://theifoneblog.blogspot.com
And Navizon does NOT drain battery, unless you know what you're doing. You need to switch the scroll thing to off, and restart your phone. I went up to 2.0, but without installer, eh. I didn't like it.