Is there some misunderstanding as to how this app works.

The developers primary language appears not to be English, so I am wondering whether some of the negative reviews relate to the fact that the instructions for the use of this app arent all that clear?
As far as I can determine this app DOES NOT provide continuous compass updates.
To use, one needs to
1. wait until a GPS signal is obtained. The "please wait a little, outside message."
2. Then one needs to walk in a straight direction for about 20 meters. The app will generally tell you the distance you need to walk.
3. Once sufficient distance is attained, the compass will "lock", showing your heading.
4. If you want to determine a new heading, press the stop button and then the start button (actually the same button with different labeling. And repeat the procedure.

I assume for the best accuracy, that in the configuration screen "accuracy of GPS" - normal should be tapped.

Hope this helps

Lets Be Objective about Compass for 3G (not 3GS)