Then, does anyone know of a good bluetooth gps receiver that works well
with gpsbabel?

The Wintec is what I use when I reach for one, though I've also had good luck with
Garmin's BT-10.  Lots of users of Globalsat products report happiness, though I've
not really beaten them up.

Interesting. Maybe i need to play around with it more but only got green
triangle icons and it only appeared on the first recorded position and
never refreshed to the current position. No one else has seen this problem?

Are you sure you're using tracking mode?   You should never get green triangles there.

Depending on the versions of software (Earth and GPSBabel)
involved, you should have gotten a little car that was green, yellow, or red, a little
paddle thingy that was green, yellow, or red, or a blue circle that turns grey and has
the hands of a clock appear as the last valid fix ages.