In the hubbub of Windows Phone 8’s launch, what was almost forgotten was that tens of thousands of current Windows Phone 7 users are now running obsolete hardware that can’t be upgraded to Windows Phone 8.

The good news is that Microsoft has taken many of the key improvements in Windows Phone 8 and apparently put them in the Windows 7.8 upgrade for “legacy” Windows Phone users.

According to the Vice President of Microsoft in Greater China, Windows Phone 7.8 is scheduled to hit China in the coming weeks.

Apparently, the Chinese will get to kick the tires before anyone else.

A new video, from, hows the current build of Windows Phone 7.8 (8858). Actually, it superficially covers some of the more superficial changes coming in the OS update.

The demo shows the new tiles and we even see the Bing lockscreen wallpaper working (hopefully, third-party apps can take advantage of it too like in Windows Phone 8).

Enjoy the video.

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