The thread title is misleading!!!
The last software update around end of Dec 2012 was supposed to be a hardware compatibility test which contained the necessary update for USB recording. However, when trying to record anything, a message shows up "No Access Rights". Apparently, it requires a separate subscription.
Since it was a test firmware and had lots of bugs especially performance issues, a working update was expected in a time span of 15-30 days. Its been six months and still no update. All news about the update turned out to be fake.
Videocon d2h is launching a new HD Set Top Box with the same features provided by the Software Upgrade on the Old Set Top Box. May be they are planning to make both of these available at the same time. A good chance to promote the new set top box which has inbuilt usb recording capability as well as an Ethernet Port.