Here is a quote from some material about GFCI's online,
"Does a GFI need to be grounded to work properly? I want to put one in my bathroom, but my outlet is an old, ungrounded type.?
"According to the NEC, it is allowable to install GFI's in ungrounded situations. This makes sense, since the GFI is not dependent of the ground to function. Remember, it does not measure shorts to the ground, it measures the current difference between the hot and neutral wires. A sudden difference, indicating that there is another path for the electricity to flow through... you, for example, causes the GFI to open the circuit and save you from permanently curly hair.
"Of course, most safety-conscious electricians prefer not to install a grounded-type "three prong" outlet in an ungrounded situation. Think about it... once the outlet is installed, there is no way for anyone to know if the outlet is really grounded or not without testing it. Thus, there is a hidden shock hazard should an appliance or tool that needs grounding... has three-prong plug... is plugged into this outlet.
"However, the NEC allows GFI's to be installed in ungrounded situations PROVIDED THAT the outlet is labelled "ungrounded". Though not "officially" approved in the NEC, the grounding hole in the GFI can be permanently defeated by using an epoxy or other adhesive to seal the hole.
"Though a GFI will activate if a grounded appliance develops an electrical short circuit to ground... such as when YOU touch a metal saw and become the path to ground... you will experience a momentary electrical shock. This could be a minor tingle or could be more catastrophic, especially if you are on a ladder or roof. This excerpt is from an OSHA (Occupational Safety and Health Administration) article on wiring in nursing homes and the dangers to employees working with ungrounded outlets...
"The ground-fault circuit interrupter, on the other hand, is a fast-acting device which senses small current leakage to ground and, in a fraction of a second, shuts off the electricity and interrupts its faulty flow to ground. The rapid response of the GFCI is fast enough to prevent electrocution and this protection is independent of the condition of the grounding conductor.
"A GFCI can prevent an electrocution; however, it cannot by itself prevent an initial electric shock to an employee before it interrupts the circuit. This initial shock could lead to injuries of an indirect or secondary nature in which involuntary muscular reaction could cause bruises, bone fractures, and even death resulting from collisions or falls. Therefore, GFCIs are in addition to, and not in lieu of, equipment grounding conductor requirements."
Here is a link to the complete article:
http://www.naturalhandyman.com/iip/infelectrical/infgfi.shtm
We sometimes confuse GFCI's with surge supressors which are common in power bars. These devices do not provide ground fault protection although they will prevent some harmonics and high voltage spikes caused by starting large horsepower electrical equipment. There are a newer class of GFCI that will trip upon the loss of power and require a reset in order to work again. This is an added safety feature that is useful for power tools but could be deadly for aquarium power supplies as Dr Joe pointed out.
Make sure your using the right one. If arcing and sparking in your house wiring is tripping the GFCI then you should probably look at that too.