To upgrade to HC 3.2 you should go to DS7 General tab. Look for upgrade TM-4G. http://forum.xda-developers.com/show....php?t=1286295
I luckily upgraded to HC with lots of searching and lost time.
The key is to follow The Manii instruction and install USB driver. Without the USB driver you can not enter Fastboot.
I have described my luck to successful upgrade as follows:
I finally upgraded my TMO 4G DS7 to HC 3.2. It is by some luck that I had downloaded a USB driver awhile ago. I tried it and it installed and I could fastboot from my XP (I don't have W7 driver) computer. Please do not ask where I found the driver because I don't remember. I downloaded it back in September from somewhere in XDA forum.
I do have the driver for XP but don't know how to upload here to share with everyone. For those who want the driver please send me your email.
I followed The Manii instruction and XDA Flashing Guide with the following details:
1. Save the recovery-Froyo-us.img in the same folder as fastboot (exe) file in XP computer, say C:\Android. And save update.pkg in the root of external SD card
2. Fastboot DS7 (vol- plus power button). Will see fastboot.... on the DS7 screen
3. Connect USB cable from DS7 to XP computer. Your computer may ask to install 'USB driver'. This was where I got stuck for hours until I found the driver on my computer. Thanks to post # 165, 166. Read posts on page 17. There are good hints there.
4. In Windows XP after driver has been installed, Click Start then Run 'fastboot flash recovery recovery-froyo-US.img' (use Browse to go to the folder where fastboot.exe is located). You will see something 'recovery...'. It seems stuck as if nothing happens there for awhile (just be patient for few minutes)
5. Reset DS7 by pressing the PIN hole near SD card
6. Enter recovery mode on DS7 by pressing Vol+ plus power button
7. Navigate to Software update via Update.pkg on SD card
Few minutes later, reboot and Bingo Honeycomb 3.2.
So far everything seems to work fine but I'm not very impressed with the screen. The characters are rather small and not as easy to read as on Froyo 2.2.2. It uses far more memory (RAM) than Froyo. Video chat works on Gtalk and Skype. GrooveIP works (phone app using Gvoice number).
Our friend Clickslick also posted links to USB driver and others. Goto page 20 or so of the thread post #196
To get fastboot to work I had to download this file:
from this thread:
and used this video:
to setup the "fastboot driver"
How to do the Driver setup:
Download the above file and unzip it this folder contains the driver needed to get past the initial plug-in of the DS7 to the PC while the DS7 is in "Fastboot Mode" select the folder of the DLed above driver and it will fail but now you leave the DS7 plugged in and go into your device manager and do as the above video shows...
now the DS7 will show as something useful...
now you will go to a dos promt by typing CMD in the run bar and following the steps on page 11 of this thread and running the command line there in post #103 it will then finish that... you will need a staple to turn off the unit in the sd card area on the left small hole...
then you will proceed with the right update.pkg file on the root of the sim card boot the unit using the + and power and select the update from sim and it works