Sprite quality problem in Android! Help!

Hello!
Me and my team have a Sprite quality problem with our game project. We are doing 2D game for Android ( Our testing device is Google Nexus 7 ) and we all are noobs with sprites.

The props look okay in editor, but once you build the thing Unity packs ( or so I have to assume ) the textures like so this! Left is the build. Right is how it is supposed to look.

For the Atlas we are using Targa with an alpha channel.

Does anyone know how we can fix this? Is the problem in Photoshop or Unity or both? any suggestions/advice?

Have you messed with the texture import settings? They pop up when you click the file in the project tab. Maybe change the compression to truecolour?

It has been tried. Doesn’t do anything. That is one of the reasons why this seems so weird and problematic.

Have you tried adding some lighting? Do other formats harbour similar problems?

Have you tried all the texture compression settings in the build process and compared them?