7.10.8862.144 WP 7.8 update removes Google Contacts and Calendar sync
If you already have account entered in phone than no problem... Only when you enter first time (after ROM flash or hard reset).
But seems not removed, only is hidden... you can still get proper Gmail sync when adding the account trough "advanced setup".
Here are screens... how to set Google sync
settings - email+accounts - add an account - advanced setup
- add your account info (picture 1.)
- select Exchange ActiveSync (picture 2.)
- add other data (picture 3. and 4.)
- Sign in.... thats all