I've found a tongue-in-cheek, temporary workaround.. listen to loud music!! I know it sounds daft, but some albums are normalised at a higher level. Retroglide by Level 42 is a fine example, also it's noticeably compressed in the production, so loud loud loud! Also some tracks by Dream Theater just have a much higher level than most everything else in my collection.
Anyone else got suggestions for a 'Company Can't Be Bothered' playlist?
The 7.8 upgrade has been withdrawn as you can see if you go to the support page for your phone.
It will show that the latest software available is version 7.5
You should be able to recover from Zune if you upgraded that way or visit a Care Centre if thats the way you upgraded.
Problem solved the audio problem has gone.
To answer your next question what happens next, we wait for the 7.9 upgrade (or whatever they call it), waiting is what we do best.
Best of all, if its now version 7.9 we are only 0.1 away from Windows Phone 8 which they said we would never get. 
No I am not a Nokia "fanboy" so this message may not be politicaly correct and may be edited or removed so as not to damage Nokia's good name.
2grimus6 wrote:Not kidding, did you check on the support page for your phone before you posted ?
Mine used to say 7.8 and now says 7.5. ( Nokia 710 )
7.8 is faulty and the update has been withdrawn.
I suggest you revert back to 7.5 as the "Live Tile" problem can cause high data usage.
Easy to do if a restore point was created by Zune.
Never said it was your fault.
Its not my fault Nokia did not inform you, I am not Nokia. Please do not shoot the messenger.
Thank you very much for this information. Do you know whether there is any way to revert back to WP7.5 if there is no restore point created by Zune? Unfortunately, I've reinstalled the system on my computer since the WP7.8 update and I lost the restore point created by Zune. 
A lot of people seem to have used a Care Centre to upgrade due to the non appearance of 7.8 and no input from Nokia as to why.
For you, and them the only option as far as I know is to get a Care Centre to re-install 7.5
Unpining all live tiles until a fix is released, may be wise. A hassle but the route I would take.
Have requested, on another thread for Nokia to advise what those who already have upgraded to 7.8 should do, but no responce from them.
I find no customer service is less frustrating than lip service customer service. This forum without participation from Nokia is lip service at its worst.
Hi folks,
Microsoft has identified a minor issue in the Windows Phone 7.8 update and have temporarily paused delivery until it’s addressed. We’ll have more information as it becomes available.
