Some info...
Sail blocking: at the frequency(s) used by the GPS system 1.2/1.5 GHz, the sail is essentially transparent (not quite but close enough), so sail blocking isn't so important. Similar effect for mast/boom.
Garmin: depending on the Garmin used as to what it does, but yes Foretrex does what yoyo said; also Garmin are quite secretive about the algorithms in use, so most of we know is from testing/speculation. But importantly for the Foretrex data-logging, it has what has become known as the "grid effect". Since the data storage capacity is quite low, Garmin has traded storage space vs. precision. The effect is that we loose the last decimal place or two, thus loosing accuracy.
12 satellite lock: I should clarify what I wrote... The term *lock* is a bit of a misnomer - most modern units will *track* 12 satellites using multiple receivers or multiplexing a single receiver (ie: if the US put more satellites up so that 13 come into view, the unit would track up to 12 of them), then *use* a number of them for its calculations. I have read that some Garmins use 6, but I cant remember what the Foretrex used specifically. The Navi/GT-11 units use as many satellites as meets a minimum criteria (what that criteria is some of us are still trying to find out... **).
Smoothing: One effect that yoyo mentioned was the filtering/smoothing effect. If you take a Foretrex, get a good lock and go for a walk for about 20m then cover the unit with a tin-can, turn around that walk back, then uncover the unit; do this a few times. Now download the data, you will see that there are "spikes" in your path where you managed to walk *extremely* fast... The unit is applying a dead-reckoning algorithm to the data-logging; which for our speed-sailing purposes is generally agreed to be a bad thing.
Wrist/shoulder mounting: some people have suggested mounting the GPS on a helmet so that it gives the best possible sky-view. But I'm not convinced of that (yet), as I have tracks where I have locked onto 11 satellites (wrist mounted). Yoyo suggested adding some velcro to the wetsuit -> this is a great idea; maybe the wetsuit manufacturers would do this as another selling point (watch mounting, etc). Mounting it anywhere is fine, provided it can track/use a sufficient number of satellites, ie: that could mean the spreader bar is fine.
** Just to let everyone know if you don't already, there are a group working in the background, trying to figure out how to increase the accuracy of GPS measurement of our speeds. You may have heard some mention of "GPS-Doppler" or "Doppler speed". The manufacturers of the GT-11 have accepted some suggestions and now log NMEA and binary data to the SD cards. We/they are also looking at the next generation devices to allow for logging of absolute error. The idea of these suggestions is that we are aiming for precision on the order of cm/s or mm/s -> that way, when someone breaks 40/50 knots while wearing their GPS, they know that it is a "world class" result.
whew, hope that explains a bit more...