The WP7.8 update will bring the 1st generation Lumia phones almost up to par with their successors (OS wise that is).
The update is now being spotted on Navifirm for Lumias 610, 800, 900, 710 and 510. So you know what this means, we are not far away from when the updates will begin deployment.
Also, the guys at foneArena managed to get their hands on a Lumia 800 with the WP7.8 update, well actually they flashed an 800 with the WP7.8 firmware gotten from NaviFirm.
Here is a look at what it looks like...
So if you are waiting for the update, it's not far along now.
You are almost there.