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It seems like after lots of initial problems Galileo project is taking off (ESA, BBC).

I was wondering what the state of preparation for that is on hardware side. Are there any consumer grade GPS units that are ready to take advantage of Galileo?

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The New GPS Units will be able to be used with both systems

"The agreement between the EU and the US, specifies that while Galileo satellites will produce Galileo signals, and GPS satellites will produce GPS signals, both signals on the ground will be compatible and interoperable, allowing users in the future to use a device that contains both GPS and Galileo chipsets, which are still to be defined. "

"Unfortunately, this will mean that existing GPS-based sat-nav devices will require a different chipset to utilise the Galileo signal. "

The GPS/Galileo should result in better accuracy and faster fixes as there are more (50 Satellites combined)

Upgrades to the current GPS to be called GPS-III also require new changes to receivers for better accuracy. http://en.wikipedia.org/wiki/GPS_Block_IIIA

http://news.techworld.com/mobile-wireless/101485/galileo-and-gps-systems-to-work-together/

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