The following works on my Raspberry Pi Model B with ITead Studio RPI GPS Add-on

Enable the UART
By default the UART is enabled to allow you to connect a terminal window and login. You need to disable this to free it up for the GPS Module.
cmdline
Edit the boot options to change the UART so it doesn't provide a terminal connection by default:
sudo nano /boot/cmdline.txt
Change:
dwc_otg.lpm_enable=0 console=ttyAMA0,115200 kgdboc=ttyAMA0,115200 console=tty1 root=/dev/mmcblk0p2 rootfstype=ext4 elevator=deadline rootwait
To:
dwc_otg.lpm_enable=0 console=tty1 root=/dev/mmcblk0p2 rootfstype=ext4 elevator=deadline rootwait
(you are removing this bit:)
console=ttyAMA0,115200 kgdboc=ttyAMA0,115200
inittab
Change inittab so it doesn't spawn a login to the serial connection:
sudo nano /etc/inittab
Change:
#Spawn a getty on Raspberry Pi serial line
T0:23:respawn:/sbin/getty -L ttyAMA0 115200 vt100
To:
#Spawn a getty on Raspberry Pi serial line
#T0:23:respawn:/sbin/getty -L ttyAMA0 115200 vt100
Reboot
sudo shutdown -r now
Install GPSD
GPSD is an open source project which provides a daemon which streams GPS data via a TCP socket, allowing you to communicate with a whole host of different GPS devices (not only this one):
sudo apt-get install gpsd gpsd-clients python-gps
Run gpsd
GPSD needs to be started up, using the following command:
sudo gpsd /dev/ttyAMA0 -F /var/run/gpsd.sock
Test gpsd
There is a simple GPS client which you can run to test everything is working:
cgps -s
It may take a few seconds for the data to come through.

Troubleshooting
Baud rate
If cgps repeatedly times out try running debug mode in the foreground:
sudo gpsd -b -N -D 3 /dev/ttyAMA0 -n -F /var/run/gpsd.sock
My GPS's specifications has it's baud rate at 38400 and only starts working after gpsd attempts 4800, 9600, 19200 then finally 38400.
Set baud rate, based on your GPS specs
sudo stty -F /dev/ttyAMA0 38400
(after reboot, baud rate returns to default)
Don't wait
Some GPS models require you to use the -n option, which instructs gpsd not to wait for client connection to poll the GPS.
sudo gpsd /dev/ttyAMA0 -n -F /var/run/gpsd.sock