I have just installed Run.GPS on a Samsung Omnia and it works perfectly.
Not sure about the locking of the gps to one application, is that what you mean? I wonder if it's even legal.
Try to contact verizon to verify what they have done and if it can be changed (firmware reset or upgrade?)
Anyway, it is not the device as I have the same one working perfectly, although that doesn't help you much.
I believe the only way I can run the GPS on my phone is by starting the Verizon "VZ Navigator" program. I believe it is because Verizon has locked the GPS on their phones (I hear that is going to change this year). That being said, when I start the VZ Navigator, run.GPS manages to pick up a signal, but it seems to be intermittent, and it also does not pick up my speed or location...