When I jumped from stock Sense to CM7.0 stable, my GPS was jacked to hell and I had to follow the steps on
this Reddit post. Afterwards, GPS was spot on. I've flashed 7.0.2 and 7.0.2.1 and the former was fine (verified use) and the latter appears OK (haven't really shaken it down, but it looks OK), but mileage appears to vary. I got a PM from someone at the CM forums and he's losing is mind over it not working.
It may just be placebo effect, but it seems that running
GPS Status and going Menu>Tools>Manage A-GPS state>Reset to flush any cached GPS data and then downloading the assistance data helps get things right quickly. It doesn't hurt to try.
UPDATE: On the drive in I fired up Maps and Navigation a few miles from home. It leaped to my proper location within a couple of seconds and tracked me all the way in. Whatever I or the CM team did appears to be working for me.
However, as I was approaching my exit, I glanced down and the phone had rebooted and was on the white HTC screen. Don't know if this means anything. It's occasionally (i.e. perhaps once a month) done this since I've gotten it, so it may be a visiting gremlin more than a CM7 issue.