For the record, the gps is crippled. Either by way of a faulty chip or an AT&T request. I spoke to HTC customer service this morning. Although she could not confirm that the gps was crippled on this particular phone, she did confirm that carriers, including AT&T, have requested this limitation, so that the consumer is forced to pay an additional charge.
I have the HTC Fuze. It is one week old and I've cannot use navigation software on this phone. Satellites will lock after a lengthy wait, but drop every 5 seconds or so. This applies to Google Maps as well as TomTom 7.
Now, if I install the AT&T Telenav software, the GPS will lock, and it will stay locked.
There are many Fuze owners complaining of this issue on other forums.
See links below:
Crippled GPS Info - Why
Crippled GPS
Fuze GPS Lag
Another GPS Complaint