This happened recently on my iPad "Intro App" (where I was testing the Message Center). I'm not seeing that message at the moment, and even when it popped up, I could continue. It's a new error, and although my iPad doesn't have a built-in GPS receiver, the App was previously fine with whatever coords it got, even though loose by a mile or more in some cases. Until this thread, I though the message was just complaining about the location method.
The Intro App has changed recently. An uninstall and re-install may be in order.
Also I have uninstalled and reinstalled the app and rebooted the phone. Makes no difference.