[jasoraso]

I don't know what AFLT is, but I can confirm that BEFORE the GPS has a lock, the "locate me" feature of Google maps / latitude is functional ... it shows your approximate location with a light blue circle overlay showing the "margin of error" ... it usually encompasses several blocks ... then when the GPS obtains a lock, the light blue circle goes away.

I can also confirm that it appears to function in the background i.e. if you exit google maps when latitude has been running, it will ask if you wish latitude to continue running - and it appears to do so ...

As the previous poster mentioned, this is in contrast to the TP1 which didn't have the approximate location based on cell towers - even after Verizon unlocked the GPS in the MR1 update.
hope this helps