It uses satellite to receive the information. With smart phone GPS systems you can have it connect to a service which will determine the best route based on real time traffic information.
With my system (Dell Axim X50 + GPS) I get maps of all the US spread over 4 CDs. Each file is about 25mb and covers a certain area. For instance there's a file for the Bay Area, Los Angeles, etc..I'm sure other parts of the US will cover more area in that amount of space.
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