Yes, the intercept will work with the external bluetooth GPS. But my recommendation is to get the EVO 4G or the Samsung Epic (Aug 31). Both phones have a lot of features, 1Ghz processors, more memory and Android 2.2 (Epic will get it in just a few weeks). Smartphones are progressing so quickly now that if you buy a mediocre phone like the Intercept, it will be obsolete or unsupported that much sooner. So if you can, spend a little more and you'll be happier.
Epic 4GJeff