After reading news about Microsoft seeding WP7.8 to fix Live Tiles issue, I immediately connected my phone to Zune to check update. And Surprise! There was update available message displayed on Zune without any internet disconnection method needed this time.
Zune displayed that new update 7.10.8860.142 is available for my Omnia W. Before checking for update I had only put my phone to Airplane mode to disable all wireless connection like 3G, WiFi and Bluetooth. Later I followed instructions on Zune to complete the first update.
After first update was complete, another update available message was displayed. 2nd update 7.10.8862.144 was downloaded and installed.
I hope Live Tiles issue is fixed with this update. AccuWeather, NDTV and ESPNCricinfo apps live tiles seem to be working. But we need to check more if any more issues are not present.
OS Version: 7.10.8862.144
Firmware revision number: 2424.12.04.3
Hardware revision number: 18.104.22.168
Radio software version: 0422.214.171.124
Radio hardware version: 0.0.0.900
Bootloader version: 126.96.36.199
Chip SOC version: 0.74.2.1
So only OS Version number is changed, when compared to previous update.
Given below are the screenshots for upgrade process done on 15 March 2013.