Hi Ann,
Thank you for your feedback. I can confirm the duplicate context creation is a known bug and I am hoping to fix it in time for the 2.0 release.
The quality of the location detection heavily depends on the version of Android you are using and it is substantially more reliable on Android 4+. However, it should still work on Android 2.x devices. As a test, you could experiment with changing the values of the "Location check frequency" and the "Minimum Distance". Setting these to "Always' and '0 meters' respectfully would make detection most likely to work but obviously this would drain battery power (but maybe worth it just as a test?).
Also, when OpenLoopz isn't detecting your location, try firing up the Android Google Maps app - if it can't find your location then it's an Android issue; if it can, then it's almost certainly a bug in OpenLoopz on Android 2.x devices.
You can also set 'Show Location Bar' in the 'Developer Options' to see the exact lat/lon position where OpenLoopz thinks you are and the last time the location was updated which can helpful for diagnosing the issue.
Finally, there is the Activity Feed which is not very user-friendly but it can be helpful when things aren't working. You can enable it via the 'Developer Options' then you will see a new menu item on the main screen called 'Activity Feed'. It provides detailed diagnostic information about when OpenLoopz location detection settings change so when things aren't working it can be very helpful to look here. Note the activity feed fills up very quickly so remember to clear it and turn it off when finished with it!
Regards,
Paul Drummond