Microsoft is aware of the issue and is advising those affected to take them back to the place of purchase and swap it for a new one.
"At this time if the phone is bricked you need to exchange to (sic) phone unfortunately," @WinPhoneSupport tweeted yesterday.
You can follow a support thread on Microsoft's support forums in which a rep advises "not to try the update, as subsequent attempts will fail similarly. While we continue to investigate the issue, we would ask that you not attempt the update until your device alerts you of another update opportunity, in approximately 3 days' time."
That's all Microsoft has really said so far, though the software giant did acknowledge to CNet that it's "investigating reports related to the Windows Phone update process" and promised to "provide additional information and guidance as it becomes available."
Do you own a Windows Phone 7 device, and if so, were you affected by this?