It works very well IMO. A far sight better than my previous phone (Pre), which would mislead me (literally) or not be able to find a satellite.
That's odd. While I won't argue that this phone is superior to the Pre in every way, I never had a problem with the GPS. Certainty not to the point where it gave me wrong directions. In fact, it saved my ass a few times when I was out in the middle of nowhere and need to find something in a hurry (tire repair shop).