Installation Guide FP1:
Since 22.03.15 the Legacy Build is available on F-Droid and can simply be installed on the Fairphone 1(U), without the need to make it a system app. You just need to also download one or more backends (ideally one for wifi and one for cellular), enable network location in settings and reboot the device.
Installation Guide FP2 (on self compiled Open OS):
Installation Guide FP2 with microG GmsCore
(a) Install microG GmsCore with integrated UnifiedNLP
(b) Install Xposed
© Install Xposed module XposedGmsCore-UnifiedNLP, which easily integrates microG UnifiedNLP into the Open FP system
(d) Choose and install a backend and set it up in the microG app.
(e) Be sure to grant permissions to and activate all newly installed modules and to reboot once everything is right. You may need to repeat the steps above to get the modules to eventually bind to the system.
With this setup good results were obtained with OpenBmapNlpBackend. Déjà Vu Location Service, MozillaNlpBackend and LocalGsmNlpBackend.
Recently there was a new app on F-Droid:
Have you tried it and does it result in a faster fix for you, who are staying Google-free?
###Outdated installation Guide:
Follow these steps.
Also this is important (copied from post #30):
Finally µg UnifiedNlp should appear in your apps drawer and you have to activate the desired backends in the µg UnifiedNlp app.
PS.: This is a wiki post. Feel free to improve this little tutorial by clicking the green pencil above.