I have used just about every Garmin GPS that has come along, and I have found that they have consistently improved with each update. Satellite tracking time has decreased and accuracy has improved. I agree completely with Middle Professor about the accuracy of the units in races. I have worn both the 405 and now the 310XT in numerous certified 5K and 5M race courses and they always track .01-.02 miles long (total) over 5K and about .02-.04 over 5M. I have never been sure if this is due to a Garmin issue, or due to the fact that I am not precisely running the measured course route. I am more than satisfied, however, with this level of accuracy. The nice thing about the new 310XT is that battery life is truly exceptional. Since I run before dawn, I always leave the backup light on and I still find myself getting a good 13-14 hours from it. The 405 needs to be charged far more often. The 405 also has a real problem with sweat and humidity and the bezel is truly worthless under these conditions. You have to lock the bezel and then the utility of the unit is more limited than with the 310XT. The 405 is lighter, however, and generally more comfortable to wear.
There is no question that dense foliage overhead will interfere with tracking, so if you anticipate doing a lot of trail running in wooded areas, you will be covering more distance than the Garmin indicates. It does attempt to make up for poor tracking when there is a break in the coverage overhead, so you will see your pace pick up suddenly at times when satellite tracking resumes, though I always get a boost from seeing my pace drop to 6:00/ mile when I know I am nowhere near that. It reminds me of a time when I truly could run that fast on a training run! On especially winding trails then, it will not track so well, shortening the distance more than you actually have run since corners will be cut off. It thinks you have run a straight line.
The real value, however, to me of GPS is that we all have our favorite running routes that we do each week. I find my Garmin tracks these precisely week after week, so that the comparisons you can do are quite realistic and valuable in assessing your fitness level over time. The various other devices that are available like the foot pods, etc., which can be accurately calibrated, I have found often need to be recalibrated from time to time. It may be a few days before you realize that something is not quite right and go ahead and recalibrate. Also, everyone tends to calibrate on a treadmill, which is really inaccurate, or on a fairly flat measured course. If you then run on a trail or hilly route, inaccuracy creeps into the measurements, far more than occurs with GPS. I much prefer the accuracy of GPS, which has its faults, but seems to me to be more reliable and consistent overall.