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The navigation system in my new 2007 ES 350 is remarkably accurate.
I've become convinced that it is WAAS enabled (Wide Area Augmentation System).
WAAS is a system where GPS signal adjustments are made, based upon the difference between the GPS indication and the known location of a receiving ground station.
Lexus doesn't say it is WAAS enabled but surely it is. If my Garmin handheld GPS ($100 one year ago) and my $219 one month old Magellan 2200T sat nav I have in my LS400 are both WAAS enabled, then surely the Lexus nav has to be WAAS enabled considering its high price. Actually, I don't think it is possible to buy a new aftermarket car sat nav product these days that is not WAAS enabled.