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I would agree that street navigation software is not the best for geocaching.
There are a couple of possible reasons for the position being off. Since the coordinates on geocaching.com are WGS84 and the GPS should be displaying WGS84, this should not be a factor. The next step is looking at the position format. The coordinates on geocaching.com are in degress, minutes and decimal minutes, or:
DD.MM.mmm
You may be putting these into a program that takes degrees, minutes, seconds, or:
DD.MM.SS
This can cause very large (in the geocaching world) discrepancies. If the formats are not the same, look for a format conversion tool on the internet (there are dozens) or simply convert by taking the decimal portion of the DD.MM.mmm (or the mmm part) and multiplying by 60. If you had 45º30.500, this will give you 45º30'30.000" (or 45 degrees, 30 minutes, 30.000 seconds).
Oh, one last thing. I don't use iGuidance, but if it has a "lock to road" feature, make sure you turn this off for geocaching as it will put your position on the nearest road even if you don't want it to.
Hope that helps. :)
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