Bill ,
If your IPad is only 'WiFi ' it does not have a GPS and will require an external GPS to work with OzRunways .If you get a 'WiFi 3G ' IPad , it will have inbuilt GPS technology , as well a cellular system . If you activate the cellular system by buying a SIM card , eg .Telstra shop , you will be able to access the Internet etc. , and this activated 3G network will give you a faster more accurate fix , it "assists" the GPS . You may also have heard the term " triangulation " , well this is what the 3G network does to get that faster more accurate fix . An IPad 2 has "assisted GPS" and this essentially means that the GPS is "assisted "by the 3G signal. I cannot comment on your friends "lost signal" but there are many on the Forums that have , and are happy with , their " WiFi only" IPads , using an external GPS . Hope this helps .
Bob