Hi,
I've another two points to add, which are about using other methods besides compasses to find true north.
A. You could use a map to find a distant landmark that's exactly north of your observing site, then point the Polarie at it. Google Earth is I think very accurate; you could use the satellite image view, then use the ruler feature to draw a line stretching up and away from your site. If you're lucky enough, you might find a particular building, or part of a building, in the distance that's exactly north of your site to which you have a clear view of. You could compare the East-West (longitude) coordinates to double check that the distant object is indeed exactly north of your site.
B. I've heard a few times that when permanent observatories are built, the Sun is often used to find true North (or South). This is based on the principle that once every day, the Sun will cross the local meridian (which is the line running between the North and South Celestial Poles), i.e. it will 'transit' or 'culminate in' the sky. That is the moment of true local noon, which is almost certainly not the customary '12.00pm noon'.
Then use a vertical pole or plumb line to cast a shadow on the ground. At that one brief moment, the shadow runs exactly north to south.
To find the moment of true local noon, use a planetarium software and enter the exact coordinates for your site, and set it to a particular date. Then get the software to display the Sun's properties, and it will usually state its time of transit, which is also when its highest in the sky for that day.
Of course, your watch or time app must be very accurate.
I've not done the Sun-shadow method before, but the theory is correct and its also nice to know that it's based on astronomical concepts. The Sun, like other celestial objects viewed from the tropics, will transit the meridian once a day. There could be practical difficulties, e.g. in getting a sharp enough shadow on the ground. I think you could use a chalk or marker to quickly mark off the shadow on the ground.
These are some articles on using the Sun, searched from Google:
http://www.bisque.com/tom/transitfiles/transit.asp.
http://adventure.howstuffworks.com/surv ... north2.htm.
Of course, apart from all of the above, there is also the drift alignment method, but that's another story. That is used for very fine calibration of polar alignment after the initial step.