While there is no official date as yet it is hoped to be announced soon but it certainly looks like the Windows Phone 7 team are on schedule to make this great OS even better with some much requested improvements.
So you are all asking what is exactly in the update?
Well..... read on,
Copy and paste
Soon you’ll be able to copy text from emails, text messages, web pages, and Office Mobile documents, and paste it anywhere you can type.
Using copy and paste is easy and intuitive. In many cases you just tap a word, slide your finger to highlight any additional text, then tap the Copy icon. To insert this text in a message or app, just tap the spot where it should go, then tap the Paste icon.
Copy and paste is a handy way to quickly send someone’s latest Facebook update, turn-by-turn directions from Maps, or a must-see link from Internet Explorer Mobile. Once you’ve copied something, you can paste it again and again.
The new feature adds to the list of time-saving shortcuts already built into Windows Phone, like the ability to tap an address on a webpage to map it (US only).
Faster apps and games
Nobody likes to wait. That’s why we’ve whittled down the time it takes for apps and games to start up and resume. It’s all part of our focus on getting you to the things you love, easier and faster.
Better Marketplace search
We’ve streamlined Marketplace search to make it easier to find specific apps, games, or music. Press the Search button in the apps or games section of Marketplace and you’ll see only apps or games in the results.
Press Search in the music section of Marketplace to search just the music catalog.
Getting phone updates
How will you know when an update is available? Easy. Your phone is designed to automatically tell you via a pop-up message (unless you’ve turned this option off). For more details, see How do I update my phone software?
Thanks for the update MS (taken from the Windows Phone Site )