FishOfPrey:Litespeed: Compass is STILL poked.
I'd put together a longer answer about the issues with the Compass in the Southern Hemisphere in a separate thread - Windows Phone 7 compass not pointing north (http://www.geekzone.co.nz/forums.asp?forumid=6&topicid=106085&page_no=1#659978)
TL;DR Try my Compass Bearing App (http://windowsphone.com/s?appid=97b39bf8-c24f-4125-9d45-444ab01fbc53). It does the magnetic declination calculation independently of the phone.
Incidentally, I've tried a few WP8 handsets in retail stores. On the 820 at least the issue appears to be resolved. Plus the gyro sensor gives much more stable compass readings when using the Motion API.
I tried your app and it helps but my issue is that the problem is still in the underlying OS.