I have that issue as well. If i understand correctly, without a GPS Dongle or "puck", the phone is using Cell Tower info to locate you... It's less than accurate. if you are connected via WiFi it's a little more accurate, but the GPS puck is the way to go!
Google maps uses cell tower triangulation to fix your position until GPS locks in. Cell tower locations have a general error of 1700-2500 meters or more. GPS accuracy is generally 10 meters or less.
I don't have that option to refresh? I'm doing it outdoors too. The GPS says "GPS Data Source: Device GPS" and "GPS Services: Location ON"
That's odd. I can't really confirm if that's just the way the 8330 is or not. There's definitely a Refresh GPS on the menu on my 8310. Sorry that didn't help. Hopefully someone with an 8330 can chime in.