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Does jailbreaking affect the GPS function

You can try to re-jailbreak it. Again, make sure you're using the latest version of RedSn0w. If that still doesn't work, you'll most likely have to use the SSH method to get Cydia in there.
 
Re-installed using exactly the same procedure - for whatever reason this time it worked!!!

Just two more questions - If I upgrade to iOS 6.0.1 will the JB disappear, and if it does can I use the same procedure with iOS 6.0.1

Many many thanks for your patience and guidance
 
Yes. But to jailbreak, follow the same steps. But normally the version on your iPhone has to match the IPSW that you select. If you're jailbreaking 6.0.1, you still use 6.0. The reason is that iOS 6.0.1 is a hotfix, not a fully "patched" ios
 
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