Re: Weather at GPS location
GPS isn't really used in this case. "My Location" is dependent on your carrier (towers and their location). Turning GPS on or off should not have an impact on your Sense weather output.
My suggestion to you is to fire up Google Maps and see if My Location works there. Make sure that GPS is not turned on for this. The blue dot should be jittery or jumping around as it estimates your location. This test will tell you if it's an issue with Sense or VZW.
Another thing you can do is try to update it at another physical location outside of the range from your currect cell tower. If it works elsewhere, it would seem that it's a localized problem with VZW nearyou and not something you can control yourself. Or simply check with another phone or friends in your area.
BTW the weather server is confirmed up and running as of this posting
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