According to Microsoft's Web site, the update, which is officially known as OS 7.0.7390.0 but carries the street name NoDo, has successfully undergone testing for some phones and the company is now ready to start delivering it to users in a phased roll out.
"Because updates are typically delivered to customers in batches, it might take several weeks before you receive notice that an update is available to you," Microsoft said.
Testing has been completed for NoDo on the Dell Venue Pro and HTC HD7 Windows Phone 7 devices, and is ongoing for the HTC Surround, LG Quantum, and Samsung Focus. The HTC Arrive, which Sprint introduced this week, comes with NoDo preinstalled.
The most notable improvement that NoDo will bring to Windows Phone 7 is copy & paste. With the update installed, users will be able to copy and paste text between Office documents, e-mails, text messages, and other sources. Users can copy text from one document and paste it to another by tapping words and dragging an arrow icon to the desired destination.
NoDo, according to Microsoft, also makes apps and games start up and resume faster, improves Marketplace search, and cleans up the Wi-Fi connection interface. The software maker also said NoDo delivers enhanced Facebook integration, more stable camera and video settings, and a better Bluetooth experience when playing music or videos.
Microsoft introduced Windows Phone 7 late last year with an eye to delivering a touch-based smartphone platform that could compete with Apple's iPhone and devices powered by Google Android.
The OS features Microsoft's Live Tiles interface, which pushes real-time updates from e-mails, social networks, and other communications tools to the forefront of the home screen. It also boasts direct integration with Microsoft products such as Office, Zune, and Xbox Live.
Earlier this year, Microsoft announced a deal with Nokia, under which the Finnish phone maker will use Windows Phone 7 as the default OS for its smartphone lineup, starting next year.