How to update my Vodafone 858 Smart? I have a Vodafone 858 Smart, a branded Huawei U8160 running Android 2.2 Froyo.  

If possible, how can I update its firmware to Android 2.3?
From my favorite forum xda-developers, a step by step guide to apply the port of Cyanogen 7.2.0-RC1 (based on Android Gingerbread 2.3.7) for the Vodafone Smart VF858 (Huawei U8160).

This is not to take lightly, read and understand everything before proceeding. So please read the introduction from the famous question:


How do I root my device?


Assuming that you've read it and took note about VOIDING YOUR WARRANTY FROM BOTH THE CARRIER AND THE MANUFACTURER, and that you did understood and have read the contents provided by the first links!! Then, lets continue:



First, backup all your data


How to backup an Android device?








Pre-requisites:


You will need the ROM Manager by ClockworkMod:


  Must have app for any root user. Make backups, flash ROMs, and own your device.

Also the GooManager Beta by Snipanet Apps:








Getting started with ROM Manager &amp; ClockworkMod

Is your backup done? Apps, contacts favorites, pictures, etc? Yes, then continue.


Rooting your phone


Go to Settings -> Applications -> Development. Enable the option USB debugging, and wait for the debugging drivers to be automatically installed onto your PC.
On your PC, download the latest release of super1click:


Read about it and take note of special considerations at this XDA thread: 
[APP]SuperOneClick v2.3.3 - Motorola Exploit Added!.
Access to the download at http://shortfuse.org/]5.

Run super1click and click the Root button. Follow all of the prompts given by the application, but make sure that you choose yes to the prompt on whether to install busybox.
Continue to the next part when your phone is successfully rooted.



Installing ROM Manager &amp; ClockworkMod


Install ROM Manager from the Google Play store.
Backup your current ROM, select "Backup current ROM". More details at eldarerathis♦ answer.
Open the ROM Manager application. Choose the option Flash ClockworkMod Recovery, and confirm the phone model as Huawei U8160.
After downloading the recovery image, a Superuser prompt will ask you for permission for the application to have root access. You should Allow this action.
ClockworkMod should now be flashed to your phone.











Installation (first time/new users):


Open the GooManager application.
Navigate to psyke83 -> roms -> u8160.
Click on the build you wish to install from the list.
If needed, click the Download Gapps button to download the Google Apps package. The most recent (and most suitable) version will always be selected for you automatically.
Click on the Download button to download the rom.
Once the download(s) are complete, reboot into recovery and install the update package, followed by the Google Apps package.
Important: if you are updating from a stock or custom ROM, choose the data wipe option before rebooting.








Before anything else, read:


What to do before root and flash my phone?
The Always Up-To-Date Guide to Rooting the Most Popular Android Phones
How to backup an Android device?
Are there any risks to rooting a device?


Ps:
Sorry about the redundancy on some information, but one must be sure that readers understand the risks and are taking measures as to prevent data loss by performing a backup of personal data as well as the current ROM in use.