All of the commercial GPS units are at least 1Hz. I use a Globalsat with the sirfstarIII chip, which I think is 10 Hz. It's pretty cheap now that newer chipsets have been released. The way racechrono works is that it has many checkpoints, which it can then use to calculate the decimal places for your timing. On a track like wakefield, there is only 1 checkpoint, so it is a little less accurate than on a larger track like Winton.
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