I downloaded the reverted GPS zip from this thread (http://forum.xda-developers.com/show...postcount=3688), unzipped and copied the /system/lib/hw/gps-liberty.so respectively next to /system/lib/hw/gps.goldfish.so on the phone.
Reboot = GPS locked immediately and seems to be working well for google maps and navigation, however the status bar does not reflect it connected and working.
For those thinking of taking the short route, dont flash the zip like you would on cm7 - it will boot lock your installation
Might put prebuilts in the rom so it can have working GPS
And it should be gps.liberty.so goldfish is the emulator
Edit: I can't get it to work... are you sure it wasn't just using wifi?