Things that the new Gingerbread 2.3.2 offer
The interface of this update is better and more organized than the last one. It also comes with some great features for file transferring and safety.
With the Gingerbread 2.3.2 you can have more control over all the settings of Huawei u8500. Now you can very easily save and remove mobile settings that you need.
The phone used to hang at times because of the shortage of memory. With this update, the RAM will be allocated in a better way so the phone will not hang anymore.
The new updates for Huawei u8500 come with lot of new features. Some of them are for operating the phone is for look and feel of the interface.

Things to do before the update
First you need to download the zip file of the Gingerbread 2.3.2. Search it online and then download to your PC. This zip file has all the important files that you need for the update.
You have to make sure that the process in not interrupted. Make sure that your phone is fully charged so that it doesn’t turn off in the middle of the process. You should also remove your SIM card so that nobody can reach you by phone during the procedure.
Take back ups for all your data. Files can be moved to your computer easily. The internet settings of Huawei u8500 should be copied. Note it down and then manually set it again when the updating is done.
Your PC must run the latest version of Windows for this. Also make sure that the antivirus program of your PC is turned off for this.

The final procedures for the update
Connect the phone to your PC with the USB cable. Copy the zipped files from your PC and then paste it in the root of your Huawei u8500.
Go to the Settings menu of your phone. Now find Development under Applications. Select USB debugging option from there.
Download the Z4 root app in your phone. In order to update the windows to Gingerbread 2.3.2, you have to root your phone with this app.
Run the Z4 root app. You will see some buttons and you will have to select the Root button. Your Huawei u8500 will automatically restart now.
The phone will be rooted automatically and restart yourself. You will see a new app in your app folder.
Download the ROM Manager app from Android market. Run it and select the option Install ROM from SD Card. They will ask for a file and you have to choose the zip file that you saved in the root folder.
Once done, choose the Fix Permissions option and the Huawei u8500 will restart into recovery mode. Select cache cleaning option and then restart again. the phone will start with the Gingerbread 2.3.2.