Even i too faced this same issue...actually today i got a new SIM card and removed my old sim, updated the configuration (APN settings etc which the configuration wizard does)..
While i restarted the device with the orginial sim it should the correct location (chennai)
Earlier it showed some egyptian city (zohua?? or something like that) because i was in cairo last week using this mobile (purchased @ dubai int airport)
I love this mobile, trendy , slim and stylish with HTC custom built interface over 6.5 :D