I've confirmed with Nokia that the update has indeed been halted for now -- sorry news indeed for Lumia owners gagging to get hold of the new software.
Omio quotes a Nokia rep as saying that the glitch in question is a "minor issue in the Windows Phone 7.8 software," so here's hoping the update continues as planned before too long.
Windows Phone 7.8 is a halfway house between version 7.5 and, offering the refreshed homescreen and resizable live tiles that come with the latter.
Microsoft riled up fans of its patchwork operating system when it confirmed that older Windows Phone mobiles. This punished anyone who opted into the new platform in its first year with a mobile that wouldn't get an update to the full-blooded software.
Windows Phone 7.8 should give your older smart phone a shot in the arm though. The update, so if you're desperate to try the new software, it can be done. You'll need to flash your phone first though, so proceed at your own risk.
Are you excited to see what Windows Phone is going to do next? Or would you rather see current smart phones getting the latest software? Let me know in the comments, or on our Facebook wall.