I'm new to this forum and have read this thread with great interest. I recently purchased an ipad3 with 32gb wifi. I know it has no gps and has to receive the signal through my wifi connection.

I downloaded the mm version from the apple store and have only apple store apps. I have been experiencing the same problem as described in the thread. The circle remains red for about 5 seconds before turning grey regardless if compass is on or off. I switch to another and and when I return to mm the circle is red. It turns great again after 5 seconds.

The maps program that came with the iPad keeps my position at all times and never loses it whether I'm connected to my wifi in the house by a window or outside on my driveway.

I was wondering if I have the latest version of mm or if the problem still exists. I have version 1.5.5-304

I retread some of the posts and saw the mm must have a direct gps signal and waasnt designed to work with a wifi version. Is this true?
Are there plans to have a version that works with wifi?

The position is turning grey because, although the app received an initial position, it is no longer being updated (which it would not via WiFi). A true GPS signal will update the regularly (typically, at least every second). If you were moving and the WiFi signal were changing (new network), the position would update to the location designated for that IP address.