I'm working on a CoreLocation application as well and I am also finding the accuracy not that great. I can usually only get a fix with an accuracy of about 50m. That's a pretty big area. On rare occasions, when I am standing in the middle of an open field holding the phone in the air and the wind is blowing in the right direction (yes, my neighbors do think I'm nuts) I can get an accuracy of about 17m (as reported by CoreLocation) - that's acceptable but it only happens rarely. I do find that the coordinates that are returned are actually pretty accurate, even then the accuracy that is returned it high but there is no guarantee of that.
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