Microsoft is preparing an update for the Windows Phone 7 platform that is be called code name “NoDo” and is expected for release at some point in February. The update will have all the copy and paste functionality that owners have been waiting for. (Of course, when it will actually arrive will have a lot to do with your phone carrier, from what we understand.)

Beyond the addition of “copy and paste” the update will add a CDMA location stack as well as support for the Qualcomm 7x30 chipset, which a couple of upcoming WP7 devices will apparently be using. The rest of the update really isn’t much to speak of, according to our sources, who claim that the majority of the other stuff contained in the update is nothing more than bug fixes. (This seems to be confirmed by Paul Thurrott, who has become famous and one of the best sources of information on Microsoft updates ahead of their actual release.)

While the “NoDo” update is sure to please many, some are already talking about code name “Mango” which is slated to see the light of day later this year. This update will pack a lot of punch with Internet Explorer 9 with both HTML 5 and Sliverlight support. In addition, Mango is said to have an updated rendering engine called Trident 5. While new gesture support is almost assured for this update, little is known about the possibility of new entertainment features; some suggest that we might see some new entertainment-oriented features, as well, but it is anyone’s guess what these might actually be.

While Windows Phone 7 sales have started off slowly, sales have picked up for the platform a bit and Microsoft seems to be pleased with the change in direction. Analysts that we have spoken with tell us that they are less skeptical about the future of the WP7 platform than when it launched, and if Microsoft continues its releases the future could be brighter than expected for the platform. However, analysts that we spoke with cautioned us, saying that Microsoft still has a long way to go to maintain the momentum that they have built up so far, and that will be difficult.