Paper Charts and GPS

[Charlie]

I am wondering about using paper charts with a GPS. I learned to Navigate with costal navigation and like paper charts. I have a plotter and like that as well. Problem is on some paper charts there is no datum reference. So lets say that you get within five miles of a location, using a radar range. You know that there is a rock that you must avoid at 3 miles. There is a lighthouse and an obvious point that you can get a bearing on with a hand bearing compass(HBC). Your chart plotter shows you at three miles. Then you plot your position on the chart using the GPS and it shows you in the same place as the plotter. Then you take out the HBC and find your position. It shows you at 5 miles. Now you have two places where you might be. First thing that I would do is stop and head back on a reciprocal course.

My question:

Are the paper charts going to give you a more accurate position with the HBC?

My guess is that the paper charts are going to give you a better idea of your location b/c you are using matching technologies. The HBC and the paper charts.

Using the lat and long of the GPS will give you an accurate location of where you are in the world but not where you are in relation to the chart. Am I right? Has anyone had real world experience with this?