Looks like the recent Windows Phone 7 update rumors were somewhat true. Paul Thurrott has posted that the expected first Windows Phone 7 update will be called "NoDo" and that it will RTM anytime January with a possible announcement during this week's CES in Las Vegas. We already know that NoDo will bring copy & paste as well as other bug fixes; however - according to Thurrott - it will also include support for Qualcomm 7x30 chipsets and the required CDMA location stack which finally makes Verizon and Sprint Windows Phone 7 launches possible. According to Thurrott's information, NoDo won't ship before February which could prove previous rumors of a January and February update.
Thurrott has also received further information about "Mango", the first major Windows Phone 7 update which is expected to be released anytime later this year. According to his information, Mango will bring Internet Explorer 9 with the Trident 5 rendering engine, HTML 5 support and Silverlight as well as gesture support. Within Microsoft, it's said that this updates is referred to as the "entertainment" branch, which suggests other, non-IE functionality as well.
Last but not least, Thurrott guessed that "NoDo" stands for "No Donuts" and could be so named because and Android update was called "Donut". However, Microsoft's very own Charlie Kindel responded via Twitter and said that "a guy failed to bring donuts to a meeting after loosing [sic] a bet. The 'nodo' codename had nothing to do with Android." which somewhat proves NoDo's existence.
Last but not least, Thurrott expects that Microsoft will never (or at least not normally) ship fixes for individual issues but it seems that Microsoft will continue the AKU-way it used for Windows Mobile updates, similar to services packs in the desktop Windows world. Therefore it seems that Microsoft isn't planning to roll-out quick and dirty OTA fixes for known bugs and issues which would be possible now with Windows Phone 7.
Cheers ~ Arne