I am virtually certain this is a software/firmware problem, not a hardware problem

jds54 - try rebooting the unit when you are having problems and see if it fixes them.

My next test is to see if rmmod/insmod the gps module will fix it - on advice from a 'real linux hacker' friend of mine. I don't yet know which module it is, but should be able to figure that out.

I share your frustration on the price/bugginess - at least if the driver was open source, it could be examined for logic flaws or typos....