Your comments

Well this is a different issues to one I know that some people are encountering. I know some people get it to count properly but when looking for lower numbers it reads the wrong numbers.

It uses old vault data so it's highly inaccurate.
Did you get the e-mail, pictures and video?
Yeah, thats all well and good when your find what you want when there are like, 10 pins on the map, as soon as you start searching a greater area then it becomes increasingly harder to find it.

As for the item, yes, the item is definately out there. I tried it locally for someone and after checking about 30 spots, I found what it showed me was there. Whilst it works that way, it's not what it says on the tin :D
I would also recommend using Colin as a beta tester too. He is a big Gowalla player and could be a great addition to your team.
Hi, I will e-mail you my gowalla ID and I will also take a short video of me using piratewalla on the iPad and to show you the error.
I've come to the conclusion that it's DEFINATELY iOS4.2 related. iPhone 4 and iPad were showing everything fine when running 4.1 and 3.2 respectively. Once they were both updated to 4.2 neither of them worked correctly. They showed correct missing items but the location is incorrect.

DEFINATELY 4.2 related.
Ok, more testing done.

iPhone is working fine, locations showing correctly as it should. iPhone 4 is running 4.1. I'm now going to update to 4.2 and will be back to you shortly.
Ok, I tried recaching the inventory and I still have the same issue. My username is all lowercase anyway so I tried upper case and mixed case and it still threw back the same issues except that it said it found items I was missing EVEN THOUGH I had one in my vault. It popped up a Tazo Brambleberry Tea which I already have.

As for universal, I don't know about that but the 4 people I have spoken to all have the same issue now and they said it worked fine before the update.

Colin DIDN'T leave you any kind of negative comment or feedback, in fact, your only 4 star rating is from him and he was complimentary.

All experiments are done on the ipad, going to try the iphone shortly.
Hi, my username isn't really important. After speaking to a few people it seems to be an issue with iOS4.2. The folks I spoke to didnt know what I was on about as they never encountered it but that was because I was the only one out of us all running 4.2.

The scenario, I was searching my local area under a friends username because I know he wanted red mittens and I knew I had dropped some nearby so I used the app. 3 different times it reported that it had found them, which is correct, except that when I clicked "okay" it took me to a different location each time, none of which had the mittens there.

I have tried it for lots and lots. When I clicked the spot it showed the item listing and it was just wrong, none of the items I searched for were on it. It's not just red mittens, it's the torch and incase items to name a few which leads me to deduce that it's a ios4.2 issue.

I know Colin Chorley had trouble too and he just posted a review on itunes for you.

It's a good app, you just need to fix this minor issue.