Kbiz,
Sorry I haven't been around in a while and sorry to hear that it didn't work. Since the CRT took It's safe to assume the pointers are in there. If you feel like it you can fiddle with the location framework files now which it seems that the KF is being "fussy" since by all means it should work. My suggestion is to look, check filenames, and check permissions (chmod 644) on these files:
-/system/framework/com.android.location.provider.jar (maker sure name is as so, and chmod 644)
-/system/framework/com.google.android.maps.jar (never know if this could mess with anything....same as above)
-/system/app/com.google.android.location-2.apk (I got frustrated with this a while ago and was a change I made based on a random post I read while trying to get this to work....give it a whirl...can't hurt, worst case you change back or uninstall)
I realize your frustration and hope you get a chance to run through and check these over in case they might happen to be the silver bullet to your issue. I really hope you can get this to work. I did notice that MapQuest included SkyHook, it is a great service but because it is per Application it is a HUGE weakness over using Google's API. Thanks for the appreciation, I hate a problem I can't solve and the fact the platform is flexible enough to do so makes me a happy camper with my Fire and Android as a whole as opposed to other fruit-based platforms....