A new tool released by Microsoft is making WP7 user’s update errors much less of a headache. The tool (released on their support site) fixes the following error codes:
800705B4: The timer ran out on what we were trying to do.
80180080: We couldn’t update your phone because your operating system might be corrupt.
Several users (myself and David K included) were receiving the dreaded #800705B4 error, and I can personally confirm that this tool allowed me to upgrade from 7004 (release) to 7008 (PreNoDo), and ultimately 7390 (NoDo).
You can download the tool on Microsoft’s support site here. For those of you having update issues initially, let us know how it treats you.