I tested my device (iPod Touch 2G iOS 4.1) if location services are enabled
permitted = [locationManager locationServicesEnabled];
and I always
Remember that [locationManager locationServicesEnabled] is deprecated since iOS 4.0. Use the Class Method [CLLocationManager locationServicesEnabled] instead.
[locationManager locationServicesEnabled]
[CLLocationManager locationServicesEnabled]
The App Specific Button can be retrieved by
[CLLocationManager authorizationStatus]