LBS provides your approximate location using information based on your proximity to known cellular network towers and Wi-Fi networks (when on and available). The more accurate the available information, the smaller the circle identifying your position on the map.
If you routinely do not enable Wi-Fi on your iPhone, the location information will not be as accurate as if you do. So, to better pinpoint your location, go to SETTINGS - WIFI - ON and if you’re in an area that can triangulate with Wi-Fi you’ll get a better result.


OFF TOPIC
I was wondering if their is a list of your audible pics. I am not finding it on your site.
I have found LBS to be the single most useful feature of the maps, but not for reasons most people think.
Question: how often do you open the map and it’s centered at your current location? For me the answer is “rarely”.
For me the LBS is a reset key. It doesn’t answer the question “Where am I?” because I never need an answer to that question. LBS is a “reset the map to my current location” function. I admit that there are people out there who frequently don’t know where they are. I’m glad the iphone can help them figure out their location in life. For the rest of us it’s an invaluable reset button.
Brandon there is not but it’s a good idea so I will have one created.
“Question: how often do you open the map and it’s centered at your current location? For me the answer is ‘rarely.’”
Here in Manhattan, I find that it’s almost always centered close to my current location. The circle size indicating estimated accuracy varies a fair amount, but if you look at its center, I’d estimate it’s generally within 30-80′ of my actual location. Without wifi, the map balloons to encompass a good piece of Manhattan- not much use, although even that level of accuracy would be useful for orientation out on the road.
BTW, I played with the GPS of one of those vaunted Nokia N95s the other day, and at least at that location, the N95 was almost as bad as the iPhone with wifi turned off.
GPS in a cell phone-size device is not a slam dunk in an urban environment. It can be hard to acquire satellites when surrounded by buildings. At this point I have the impression that the iPhone’s LBS is actually superior in practice to the N95’s GPS-based tool in an urban setting. Anyone else have experience like that?
I do see a difference when checking locations from my house. With just EDGE running, the target circle encloses most of the small city I live in. With WiFi going, it does place the target circle on my block, centered on my house. I don’t see where this would actually help out in a rural area or somewhere outside a metro or area where there are not a number of WiFi transmitters around. I also realize the locator is not perfect, but while I try to check it (for interest purposes only) I often find it may be off by a mile or more.