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I have recently purchased a Garmin GPSMAP76csx and on the first trip it seemed as if it was using the orientation of the GPS unit (i.e. the compass reading) for the boat's heading. I was following a route and although the tracklog was laid down over the route, the GPS kept saying that our current heading was at near right angles to the actual course. When I reset the threshold speed for activating the compass this problem seemed to go away.
Does this sound right? Is it what you would expect?

Sounds right to me. Below the threshold speed the indicated direction is taken from the digital compass, so having the compass calibrated and pointing in the direction of travel is critical. Above the threshold speed the indicated direction is derived from the GPS info and indicates the actual direction of travel.

Also the unit must be held level for the electronic compas to work. I turn mine off unless I need it. It must be recalibrated every battery change.

Jeff T