One app (Dino Dominion) will not register location but will express this complaint: "In order to register your location, please turn the location permission setting on in the application settings."
The app itself has permissions (told to me when installed and when Managing Applications) of coarse and fine location. I didn't think these permissions needed "turning on" - other apps are using GPS without problems.
I asked the app developer, but all they said was "You have to turn on location permission on your device" and "GPS needs to be valid on the side of your device."
I couldn't see any relevant settings anywhere. The GPS is working fine. Also, other users of the app seem to have no problems.
I have HTC Nexus One and Android 2.2.2.