Apple issued a statement last week saying that there are a few bugs in the location tracking feature. One is where even when location services are turned off, the phone continues to collect location information and the other is that the phone stores information for up to a year when it's only supposed to hold on to information for a week. These bug fixes are supposed to come with iOS 4.3.3 which according to reports will come in the next two weeks.
Bugs to be fixed in a couple of weeks
Early releases have been reported to no longer backup the location information to iTunes, the size of the database is reduced and is deleted altogether when location services are switched off. Battery life improvements have also been reported. Despite all the changes to location tracking that the new iOS will bring, users will still be likely to have problems with the process.