If you're having problems with your installation of Better Than Wolves, or if you've woken up in the future and are beginning to doubt the nature of reality, here's the place to post about it.
Build a beacon. After a few moments the compass will point toward it
The effect has a higher range on larger beacons.
Other people on the server i play on have reported the same effect, so i don't think it has to do with my install. I would like other players however to verify this problem using the steps above.
Iron beacons have a stronger effect than others (as do soulforged beacons), but all beacons generate a field which the compass will point towards. The only exception is the glass beacon, since it is intended as a strictly decorative option.