Mahim,
The steps I carried out were as follows:
1) Charged my battery in another Sony Ericcson phone to ensure it was fully charged to carry out update.
2) Downloaded the latest version of the Sony Ericcson Update service (
Sony Ericsson - Support - Softwaredownloads - C905)
3) connected the phone to pc via usb ran update sevice, and it detected a new sw version was available
4) Downloaded software and followed the installation instructions
It took approx 20 mins, then phone was working.
(I'd advise you back everything up on phone b4 carrying out update)
If this fails take it back to 3 and request a new phone (not a repair) as it's barely a week old!!