The clock for the SD card seems to be causing interference to the internal GPS antenna.
I refer you to: http://www.openmoko.org/wiki/GPS_Problems >From that it looks that the issue of having to remove the SD card can be pretty easily resolved. Until that fix is available you can verify that your GPS works fine by removing the SD card and then run the test according to: http://www.openmoko.org/wiki/Howto_Test_Your_GPS_with_agpsui -Jim
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