I had this same issue after the update. Couldn't find my city or location and the auto update box wouldn't stay checked. Basically nothing worked at all. This is what I did to get mine to work. First I made sure autosync was on under settings > accounts and sync, then went into settings > location and checked "use wireless networks", deleted and re-added the widget (selecting current location) then went back to settings > location and unchecked "use wireless settings". Been working as it should after that. I don't think it matters to uncheck "use wireless settings" but I don't use that so that's why I did it. Hope that helps some of you.