I have been looking into the VX-8R handheld as well, because it has the built in TNC. Did you get the GPS unit for it not sure it will work with anything but theirs? That might be why you are not able to send your location.
I did not buy the Yaesu FGPS-2 module initially (although I plan to once I decide between the Remote Mic or HT mount). The module certainly makes it MUCH more effective, but it is not strictly necessary for APRS operation. You can manually enter your position (Lat/Lon), which is a PITA. Sadly, all coordinates on the VX-8R are Lat/Lon, and there is no way to enable UTM (which we use for SAR). You do have the option of using Degress/Minutes/Seconds, or Degrees/Decimal Minutes.
As far as I have been able to tell, noone has been able to interface any other GPS with the VX-8R. It does not use a standard NMEA interface. They also have a new version of the VX-8R coming out soon that is "APRS Enhanced" called the VX-8DR (http://www.universal-radio.com/catalog/ht/0008.html). Its is a bit more money, and they will also have a $60 upgrade program for existing VX-8R owners (apparently its a hardware upgrade, not just firmware).