Ok, I've been experimenting some. From my phone I can activate real-time update and it makes her GPS turn on and pick up a location and returns me a GPS location for her. HOWEVER...if she's running Google Navigation, real-time update doesn't seem to do anything. In fact, it seems to stop updating altogether. Also, I click to real time update and she's stationary, it'll get a GPS location the first time and then it goes to cell tower accuracy after that.
Both of us are Droid X running 2.2. Both rooted only for Barnacle WiFi and DroCap.
I know it's beta, but it seems to be REALLY buggy. I really expect a little more from Google.