While it was reported earlier that Microsoft had actually halted the distribution of the Windows Phone 7.8 due to a possible live tile bug, and that the company was now aware of the problem although falling short of providing a satisfactory response, there's more new development to that issue.

Per reports, Microsoft has now officially confirmed that the company is seriously looking into the problems caused by the new Windows Phone refresh, and is on its way to develop a fix for the live tile bug.

"Yes.. We identified a minor issue where some 7.8 tiles stop updating and we are working on a fix now," Microsoft's Joe Belfiore, who leads the Windows Phone Team, confirmed on Twitter. The information was revealed only recently when Belfiore acknowledged the issue and responded to a question about static tiles.

"What form that update takes is anyone's guess as presumably it will require an updated OS and not just a software patch. Since Windows Phone 7.x doesn't do over-the-air upgrades like Windows Phone 8 does, apparently this will be a little trickier," WPCentral writes.

Moreover, Windows Phone 7.x users "will also require some sort of OS update to address the Google Gmail CardDav and CalDav login issue, which is set to expire mid-year for current users. So far it is not clear if Microsoft intends on lumping that fix into one for the Live Tile problem."

Vodafone in Germany, only recently, revealed that Microsoft had halted the Windows Phone 7.8 update "until further notice."

The information was revealed when a moderator on Vodafone's German forums posted the news that Microsoft had halted its plans for the update's distribution until further notice. Although she didn't go into further details as to why Microsoft came up with this decision, speculation was widespread that Microsoft was forced to make such a decision due to problems with the functionality of the new live tile system.

"Windows Phone 7.8 users have complained of increased battery drain and failing Live Tile updates after upgrading to the new OS. Designed as an update to bring a similar Windows Phone 8 look and feel to existing devices, Windows Phone 7.8 is a fairly minor update for users without the latest hardware," The Verge adds.