Under 'Settings', 'Personal', 'Location Services' (same screen as StartActivity(GPS1.LocationSettingsIntent)) I have only 2 settings:
-Google location service - location determined by wifi
-Location& Google search - let google use your location to improve search results and other services
I am not sure what you mean by 'pull down notification bar', I don't seem to have anything like that in settings or when in my app. When the app starts it does say that it will have access to my location.
The GPS must be working because it shows my position on Maps.