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Any (and all) GPS receivers lose sattelite connections when *UNDER* something that obstructs its path (a great example is you cannot get Sattellite radio when pumping gas because of the awning, or people in NYC who have bad GPS coverage because of all the tall buildings).
The "bars" are your radio signal for your PCS coverage, and have nothing to do with your GPS signal.
My Garmin Zumo GPS loses signal when I ride through a local bridge-tunnel. It's funny to watch the elevation. At the start of the tunnel it is about 12' above sea level and then it goes down at a steady rate all through the tunnel after I lose the signal, even when I am going uphill going up the other side.
It's normal.
The OP was inquiring about Assisted GPS. This type is a ground based location acquisition using cell phone towers to triangulate one's position. Which is why he mentioned that he has 4-5 bars of cell phone signal indicating that his phone is in contact with cell towers.
A-GPS has been in cell phones for many years. This provides 911 responders with an approximate location of a person's location.
To answer the OP's question, the Motorola Droid does in fact have both GPS and AGPS. AGPS on the Droid is activated when you place a 911 call. It is not utilized for navigating.
Taken for the Motorola website:
When you make an emergency call, the cellular network may activate the AGPS technology in your mobile device to tell the emergency responders your approximate location.
No, google maps and other apps (locale for one) have access to agps as well. It is very innacurate when compared to gps though. I turned off gps then opened google maps and it thinks that I am currently in the middle of the Wal Mart parking lot about 500 yards down the street from where I am sitting now.
That's where I was actually. I was coming back from the TD Garden and my car GPS was working fine, while my droid couldn't find GPS signal... I'm kinda let down by this.