For those old WP7 faithfuls who are trying to get WP7 update 7.0.7392.0 to work on their Omnia7 without any success and thinking you have bricked your phone, I have managed to get mine to work successfully.
It is not an exercise for the faint-hearted and requires good 3-finger coordination. It is somehow still linked to an underlying bootloader issue from Samsung for the Omnia7. Read and download the fixed USB driver for Omnia7 here: http://bit.ly/mN3tzu and http://bit.ly/jUEnBJ. Make sure your Omnia7 bootloader is more than 22.214.171.124. http://bit.ly/jVxK8B. Mine is the 126.96.36.199 and it worked like a charm. This really reminds me of those great CE and WM days :)