Did you follow these steps?
# Navigate to Start -> Settings, and click on Phone in the Personal tab. Click on the Services tab at the bottom. Highlight Location Setting and click Get Settings. Ensure that LOCATION ON is selected. (Fig. 1)

Fig. 1
http://www.cinconet.org/screenshots/gpswiki/fig9.jpg

# Navigate to Start -> Settings, and click on External GPS in the System tab. Ensure that GPS program port is set to COM4 in the Programs tab (Fig. 2),

Fig. 2
http://www.cinconet.org/screenshots/gpswiki/fig10.jpg

GPS hardware port is set to (None) and Baud rate is set to 4800 in the Hardware tab (Fig. 3),

Fig. 3
http://www.cinconet.org/screenshots/gpswiki/fig11.jpg

and Manage GPS automatically (recommended) is checked in the Access tab (Fig. 4).

Fig. 4
http://www.cinconet.org/screenshots/gpswiki/fig12.jpg

# Install Valhalla Legends GPSServer.cab and soft reset. (If you have installed a previous version of the GPSServer cab, make sure you uninstall it first and soft reset prior to installing this cab)
# Congratulations, you now have working GPS/aGPS on Verizon Wireless MR1 with both 3rd party applications* & VZNavigator.