Ok I am making this game in whicih I load a bunch of textures from memory, so far I have been using kTexture2DPixelFormat_RGBA8888 and everything worked fine (except on 1st gen devices) in which the memory at load time was way too excesive and caused a crash. In any case I tried setting my texture mode to kTexture2DPixelFormat_RGBA4444 and the application crashes as soon as it tries to load the first texture, I don't really know what could be going on but here is the the debugger output of the crash, if anyone has any tips, I will be very thankful for it.
By the way all my images are .png.
I setup the director as follows
if( ! [CCDirector setDirectorType:CCDirectorTypeDisplayLink] ) {
[CCDirector setDirectorType:CCDirectorTypeDefault];
}
self.cocosView = [[UIView alloc]initWithFrame:CGRectMake(0, 0, 100, 100)];
[self.window addSubview:self.cocosView];
// Use RGBA_8888 buffers
// Default is: RGB_565 buffers
[[CCDirector sharedDirector] setPixelFormat:kPixelFormatRGBA8888];
// Default texture format for PNG/BMP/TIFF/JPEG/GIF images
// It can be RGBA8888, RGBA4444, RGB5_A1, RGB565
// You can change anytime.
[CCTexture2D setDefaultAlphaPixelFormat:kTexture2DPixelFormat_RGBA4444];
[[CCDirector sharedDirector] setProjection:CCDirectorProjection3D];
[[CCDirector sharedDirector] setDepthBufferFormat:kDepthBuffer24];
[[CCDirector sharedDirector] setDepthTest:YES];
[[CCDirector sharedDirector] attachInView:self.cocosView];
And it crashes when loading the first texture.
I am attaching an image of the crash.

wanted to add:
Cocos version : cocos2d: cocos2d v0.99.1-pre
More info:
crash stack trace
#0 0x036875cc in twiddle32x32_rgba16_4444 ()
#1 0x0368813c in ARMTwiddleRGBA16_4444 ()
#2 0x0360f0be in gldModifyTexSubImage ()
#3 0x034b8712 in glTexImage2D_Exec ()
#4 0x30fe90a6 in glTexImage2D ()
#5 0x000fcb58 in -[CCTexture2D initWithData:pixelFormat:pixelsWide:pixelsHigh:contentSize:] (self=0x5778550, _cmd=0x14486c, data=0x59ab000, pixelFormat=kTexture2DPixelFormat_RGBA4444, width=1024, height=512, size={width = 576, height = 512}) at /Users/matsebc/Desktop/Applications/Elance/xodo/ManaRealms/Mana Realms/libs/cocos2d/CCTexture2D.m:127
#6 0x000fe67c in -[CCTexture2D(Image) initRGBATextureWithImage:pixelsWide:pixelsHigh:] (self=0x5778550, _cmd=0x14ade4, CGImage=0x577f330, POTWide=1024, POTHigh=512) at /Users/matsebc/Desktop/Applications/Elance/xodo/ManaRealms/Mana Realms/libs/cocos2d/CCTexture2D.m:493
#7 0x000fd518 in -[CCTexture2D(Image) initWithImage:] (self=0x5778550, _cmd=0x334bf894, uiImage=0x58b3cc0) at /Users/matsebc/Desktop/Applications/Elance/xodo/ManaRealms/Mana Realms/libs/cocos2d/CCTexture2D.m:208
#8 0x00102a44 in -[CCTextureCache addImage:] (self=0x302710, _cmd=0x334dd670, path=0x54c6e30) at /Users/matsebc/Desktop/Applications/Elance/xodo/ManaRealms/Mana Realms/libs/cocos2d/CCTextureCache.m:186
#9 0x000f9804 in -[CCSpriteSheet initWithFile:capacity:] (self=0x58b3f50, _cmd=0x13d324, fileImage=0x54c6e30, capacity=29) at /Users/matsebc/Desktop/Applications/Elance/xodo/ManaRealms/Mana Realms/libs/cocos2d/CCSpriteSheet.m:92
#10 0x0007b9e8 in -[MRSpriteSet initWithFile:width:height:dye:] (self=0x58b3f50, _cmd=0x13d26c, source=0x54c6e30, aWidth=64, aHeight=64, d=0x0) at /Users/matsebc/Desktop/Applications/Elance/xodo/ManaRealms/Mana Realms/Classes/MRSpriteSet.m:19
#11 0x0007b950 in +[MRSpriteSet spriteSetWithFile:width:height:dye:] (self=0x155a00, _cmd=0x13d1c0, source=0x54c6e30, aWidth=64, aHeight=64, d=0x0) at /Users/matsebc/Desktop/Applications/Elance/xodo/ManaRealms/Mana Realms/Classes/MRSpriteSet.m:15
#12 0x00078f5c in -[MRAnimatedSpriteConfiguration loadSpriteSetFromNode:palette:] (self=0x586a4a0, _cmd=0x13d038, child=0x586a750, palette=0x0) at /Users/matsebc/Desktop/Applications/Elance/xodo/ManaRealms/Mana Realms/Classes/MRAnimatedSpriteConfiguration.m:157
#13 0x000789ac in -[MRAnimatedSpriteConfiguration loadSpriteFromXmlNode:variant:palette:] (self=0x586a4a0, _cmd=0x13d078, node=0x5767840, variant=0, palette=0x0) at /Users/matsebc/Desktop/Applications/Elance/xodo/ManaRealms/Mana Realms/Classes/MRAnimatedSpriteConfiguration.m:112
#14 0x00078624 in -[MRAnimatedSpriteConfiguration initWithDDXMLElement:variant:palette:] (self=0x586a4a0, _cmd=0x13d0a0, root=0x5767840, variant=0, spritePalette=0x0) at /Users/matsebc/Desktop/Applications/Elance/xodo/ManaRealms/Mana Realms/Classes/MRAnimatedSpriteConfiguration.m:90
#15 0x00078390 in +[MRAnimatedSpriteConfiguration loadConfigurationFromFile:variant:] (self=0x1559d8, _cmd=0x13cbec, file=0x5868450, variant=0) at /Users/matsebc/Desktop/Applications/Elance/xodo/ManaRealms/Mana Realms/Classes/MRAnimatedSpriteConfiguration.m:76
#16 0x000784a4 in +[MRAnimatedSpriteConfiguration loadConfigurationFromFile:] (self=0x1559d8, _cmd=0x13ab1c, path=0x5868450) at /Users/matsebc/Desktop/Applications/Elance/xodo/ManaRealms/Mana Realms/Classes/MRAnimatedSpriteConfiguration.m:81
#17 0x00063bf8 in -[MRPlayer setSpriteWithId:inSlot:ofColor:] (self=0x54d3070, _cmd=0x12f9b4, sId=0x5868f20, slot=0, color=0x151b00) at /Users/matsebc/Desktop/Applications/Elance/xodo/ManaRealms/Mana Realms/Classes/MRPlayer.m:125
(BTW all that is in a brand new project I created just to test).
Ok even more info this is one of the files that works great when using 8888 but crashes when using 4444.

This other one

looks like this when using 4444.