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Post updated below with video of the marriage proposal that took place inside the giant phone.

Microsoft grabbed some attention over the weekend by constructing a giant Windows Phone in New York City’s Herald Square to promote the release of new Windows Phones on AT&T and T-Mobile.

Far East Movement plays inside the giant Windows Phone in New York City.

But it turns out it’s not a static display.

Throughout the day, the company is planning to stage different scenes in the various tiles on the oversized phones — including a ‘life-size’ Plants vs. Zombies game inside the gaming tile, a performance by the band Far East Movement in the music and video hub, weather reports, and a man proposing to his girlfriend inside the phone’s “Me” tile.

It’s part of a broader attempt by Microsoft to build buzz for its well-reviewed Windows Phone 7.5 update, seeking to bounce back from a sharp decline in its share of the U.S. mobile market over the past two years

In related news, Microsoft today announced the imminent release of a Spotify music app for Windows Phone. (The popular music service is already available for iPhone and Android.)

Windows Phones being launched today include the $50 Samsung Focus Flash from AT&T, an effort by Microsoft to get existing users of standard cell phones to upgrade to Windows Phones. AT&T is also releasing the Samsung Focus S Windows Phone, for $199 with contract. T-Mobile is offering the HTC Radar 4G Windows Phone for $99 with contract, after rebate.

Microsoft also confirmed a holiday release timeframe for the HTC Titan on AT&T but didn’t give a specific price or date. With a 4.7-inch screen, the Titan is the largest Windows Phone yet, unless you count that giant live-action device in New York today.

Update: Here’s the video of that proposal …

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