Is the orange light on the GPS blinking on and off? If so then the unit has a satellite connection.
In WLS if you click on "maps" then go to menu and click on "center on GPS" what happens?
The process on the HTC touch is:
1) Turn GPS unit on - Blue light will be flashing and Orange light will start out solid (on cold start)
2) On the PPC click Start ,Settings and then click the Connections tab.
3) Click on the Bluetooth icon and on the Devices tab click add new device.
4) When it finishes Select the GPS20C and Click next, enter the Passcode which is 1234 and click next again.
5) When it comes up with partnership settings make sure you tick the box next to "Serial Port" and click finish.
6) Click on the "COM Ports" tab and click on "New Outgoing Port"
7) Select the GPS20C from the list and click Next
Select an available Port (remember what one it is), Untick the Secure Connection.
9) Click Finish
10) Open WLS Click on Menu and Click Settings.
11) Under GPS Port Select whatever port you set up then click done.
12) Click on "Map", Then go to Menu and "Center on GPS". If all is working ok you you see a Red arrow appear on the screen.
If you see a Grey arrow then it is still looking for satellites. Check the GPS unit, if the orange light is flashing then it means it has a satellite lock. If it is solid orange then it is still searching.
What version of WLS are you using. If it is an older one try updating it.