I once saw an application for the pocket pc (long ago) which showed the last 50 or so points plotted on a map as calculated from GPS.
With the GPS unit still, the points plotted moved in a trail due to imprecision. The application would plot an X at what was the average of the last points in the buffer. This X would move around slightly within a circle which was the minimum radius of accuracy.
At some times during the day the accuracy could visually be seen as much better than usual. The trail would move in a tighter pattern.
Most GPS applications try to lock into something so the location doesn't move around on the map like this. But as described above, the application would be used when the phone was placed in a stationary location for a time to try to get a more accurate position.
Is there an application on the Droid that does this?