Thank you so much for your reply.
Yes, I am using the official geocaching app and tried uninstalling it and reinstalling. I could not get any options to let me calibrate within the app, but I am trying. Nothing has changed. I did use the feature you described in your screen shot and the compass does work in that mode. It rotates about and continuously has North pointing the right direction no matter what way the phone is orientated. Once I move to the larger compass (green full screen) it does not work.
Where in the app do you set North up?
It always has North at the top of the phone, no matter where North is, an also does not rotate as I rotate. This feature works on my friends phones I was geocahing with. However, it will countdown as I get closer and beep within 30 feet, so I know knows where I am somehow.
Thanks for your help, I hope I am explaining it right. As long as I know which way is North I can work around, but it would be nice to know what I am doing wrong.