Update the Dashboard first (IMPORTANT!, if like me you accidentally updated the firmware first. Connect the EC1260 on WinXP / Vista PC and install modem drivers, so that it is recognized as MODEM. The ZIP file when unzipped has two folder with one file each - Dashboard update & firmware update. Tata Photon site has a EC1260 Windows 7 upgrade patch listed in "Download Dialer" section of their site. Firmware - The internal data card binary. Dashboard - Software (The modem drivers, dialer, etc). The Huawei data card update has two parts: Long story short, here is the actual upgrade method: So posting here so that anybody facing same situation, on TE or off TE could use it. 
After doing some research online, trial and errors and reading forums, I finally made it work on Win7 today. As usual Tata Indicom store / CC were hopeless. On the first look, there are literally no upgrade instructions / manuals on the Photon site / Huawei site / net to make it work with Win7 (Except for a patch download file on TATA site).
He had a TATA Photon+ connection through Huawei EC1260 EVDO USB Data card earlier working on Vista, but it would not get detected as a modem on Windows 7. I recently upgraded my team mate's Acer laptop to Win7 64-bit and the first hurdle was internet connectivity.
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