Arduino & Parallax GPS Receiver Module

Hello.

We were assigned with the following project in uni: Build a self-guided vehicle using an embedded GPS system.

Our professor proposed us to use the Arduino board as its easy to use and cheap. What we first need to do, is to locate the precise position of our vehicle using a GPS module. In the main site, we found that we can use the parallax GPS receiver module. Although we read in the Parallax manual that the module has a +/-5 meter position accuracy and a +/-0.1 meter per second velocity accuracy.

As we need to guide our vehicle through specific co-ordinates, we were wondering if there is any way to eliminate this error in the module's accuracy (+/-5 meters) or do we need a different module (not the parallax one) to achieve the minimum error posible?

Has anyone worked in any similar project?