Both Win 7 and all 64-bit versions were problematic when flashing Maemo5; see the Wiki. Can you try 32-bit WinXP (Pro), (oldskool)? Suggest you talk to your reseller/network about this, if you're still in the sales domain. Did the update show once you'd started roaming or inserted another sim? Also, It maybe that the device is locked so only by getting the operator to unlock it will the standard O/S work on it? One more point - Look on here and the Wiki for ways to prevent notifications for s/w updates. It'll make that little flashing icon go away at least!