I would like to hookup a GPS receiver to my Pi so that I can:


Get my geographical position 
Synchronise clock when not connected to network


What are my options? Will any hardware supported by gpsd work with the Pi?


Question: Setup ntp client with embedded device
Answer: It looks like you have the Busybox version of ntpd.  Here's a useful HOWTO:

http://wiki.openwrt.org/doc/howto/ntp.client

For example:

ntpd -q -p ptbtime1.ptb.de