Up until now debugging location oriented applications in the simulator was a bit painful, there was no real way other than coding to a specific location and if you relied on specific GIS data you couldn't easily debug that case.
Chen was working with an enterprise customer and got fed up with that so he built a UI which you should be able to access via the Simulator menu in the next update. This UI allows you to drag a Map to determine your current location in the location API. It will fire the appropriate events and allow you to define the GPS states. This should make the lives of those of you building location aware applications much easier!
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