On my N770, I got the "illegal instruction" error when running gpsd and had to update it, resolving the issue for me.

Here's the process I followed:
*Reference: http://sucs.org/Knowledge/Articles/Nokia%20770
*Install new libgps16
**Get http://packages.debian.org/sid/libgps16/armel/download
**mkdir tmp1
**dpkg --extract libgps16* tmp1
*Install new gpsd
**Get http://packages.debian.org/sid/gpsd/armel/download
**mkdir tmp2
**dpkg --extract gpsd_2.33-5_armel.deb tmp2
*Copy new files into place
**cp tmp2/usr/sbin/gpsd /usr/sbin
**cp tmp1/usr/lib/* /usr/lib
*Tweak libs
**cd /usr/lib
**ln -s libdbus-1.so.2.0.0 libdbus-1.so.3