I had tried the reset button combo, without luck. I went to the ATT store, and the rep just did it for longer than i did and it reset properly.
went it loaded, it showed that the update was being installed with a stuck progress bar, after about 3 min, it went to 'attention required' so i tapped it and it said it was unable to install the update, then the update disappeared from the marketplace all together.
Extremely odd. i had an HD7 before this and never ran into this. regardless, be wary of the update.