Can the iPhone determine if you\'re facing north, south, east or west?
There's no compass in the iPhone or iPhone 3G. The iPhone 3GS, however, has seen the addition of a digital compass, so this process has become easier.
On a 1st gen or 3G, the only way to determine facing is what stalepretzel is suggesting. But beware that it will only work when the GPS has a sufficient lock and the user is actually moving. You'll have to do a lot of smoothing to get any kind of usable data, perhaps with instructions to the user to hold it still while walking.