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You do realize that the WiFi only iPad doesn't have a gps chip don't you? and relies on nearby hotspots having been mapped and logged with it's location. I don't think you have to actually be connected to one, as long as their ssid is visible to the iPad it can get a rough idea of where you are.

If you try it from a different location that will have been mapped, starbucks for example, does it work then.