It works for me in Oneiric, having the following geoclue packages installed:
geoclue, geoclue-ubuntu-geoip and libgeoclue0
I am affected by another bug, where it crashes during startup, related
to geoclue apparently: bug 888661.
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https://bugs.launchpad.net/bugs/868904
Title:
Redshift fails to start with session due to geoclue failure
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