Any one know how the new 7.8 update will affect people that have not received 7.8

If you haven't received the initial WP7.8 update on your device, officially or otherwise, then the update will not affect you. To put it simply, you'll be stuck with the current version of Windows Phone 7 you have already installed on your phone.

Should you be interested in updating, here's a tool that simplifies the process: SevenEighter: Want Windows Phone 7.8 now? Try this easy tool (Update: Now supports 8862!) - Windows Phone Hacker

*Only applies to the Nokia Lumia WP7 line of phones*: if you update via the tool provided within the link, be aware that the process only updates your phone's OS Version, not the firmware that comes with the update that you receive via official means. To download the firmware that coincides with the WP7.8 update, go here: [CAB] Official WP7 Updates List up to WP 7.8 + ALL LANGUAGES complete + OEM updates - xda-developers
 
If you haven't received the initial WP7.8 update on your device, officially or otherwise, then the update will not affect you. To put it simply, you'll be stuck with the current version of Windows Phone 7 you have already installed on your phone.

Should you be interested in updating, here's a tool that simplifies the process: SevenEighter: Want Windows Phone 7.8 now? Try this easy tool (Update: Now supports 8862!) - Windows Phone Hacker

*Only applies to the Nokia Lumia WP7 line of phones*: if you update via the tool provided within the link, be aware that the process only updates your phone's OS Version, not the firmware that comes with the update that you receive via official means. To download the firmware that coincides with the WP7.8 update, go here: [CAB] Official WP7 Updates List up to WP 7.8 + ALL LANGUAGES complete + OEM updates - xda-developers

Do you know if Microsoft will release an update for those that are still on 7.5? Or am I stuck here in limbo forever?
 
Do you know if Microsoft will release an update for those that are still on 7.5? Or am I stuck here in limbo forever?

The 7.8 update is available, even if you're still running WP7.5 (Mango/Tango). You can retrieve it via official means such as Zune, use seveneighter, or use the manual .cab update method to retrieve it. What I meant in my earlier post is that the updates for WP7.8 builds 8860 and 8862 (mostly bug fixes) are only pushed by Zune if you have already installed the initial WP7.8 build. Otherwise, you can already update to 7.8.
 

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