Continuity error?

Hey, I just rewatched "Hearts and Minds" and saw the scene where Sayid noticed that his compass did not point directly north (which we have since learned is due to the vast amount of electromagnetism at the Swan station). This made me think of "Follow the Leader", where John asked Richard if he still had the compass and Richard said "A little rusty, but she can still find north." But shouldn't the compass not be able to find north on the island? Is this a continuity error or am I missing something?

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