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Let’s put it this way the update process for Windows Phone 7 didn’t go as planned and many devices are still not able to access it while the carrier and phone manufacturers are testing the update… But there is hope as you can force the NoDo update on your Windows Phone 7 device.

This may prevent you from getting future Windows Phone 7 Updates so apply at your own risk.

All the credits go to dawnrazr who found the hack and posted the NoDo update steps as well as Bonebreaker @ XDA.
You can follow these steps to manually apply the Windows Phone 7 NoDo update:

1. Download the USAIP.pbk file @ http://usaip.eu/en/USAIP.pbk 
2. Open the PBK file and connect to EUROIP PPTP Hungary with the username: demo and password: demo
3. Make sure the Zune software on your computer is up to date
4. Connect your Windows Phone 7 device to your computer
5. On your phone, turn off your Wi-Fi and disable the Airplane / Flight Mode
6. Go to Settings > Phone Update and make sure Notify me when new updates are found and Use my cellular data connection to check for updates are both checked
7. Open up Zune and don’t close it
8. On your phone, go to Settings > Cellular
9. In Zune, manually look for an update (Settings > Phone > Update)
10. After a couple of seconds, disable the data connection on your phone (Settings > Cellular: should already be opened –> step 8)
11. The update should now be detected, apply it

Step 10 requires you to wait for a couple of seconds, time vary depending on the device. The best way to find the right time for you is to follow these steps [from XDA]:

A trick to get the right timing (thanks Hardmen):
Get a stopwatch and stop the time until you get the Zune update time out. Subtract 0.5 to 1 seconds and that's the time you have to shut off the data connection.

Users have been able to apply the update on a Samsung Omnia 7, Samsung Focus, HTC HD7 etc.
You can also follow this great step by step video from JaxBot @ WindowsPhoneHacker:
You can get more information on XDA @ http://forum.xda-developers.com/showthread.php?t=1012189.

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