Unity 3 Texture Compression- Help!

Having major texture quality problems in Unity 3b6. In unity iphone all my textures were set to RGBA PVRTC 4 bit. My textures were gorgeous. I upgraded my project to Unity 3b6. The problem is when I set those SAME EXACT textures to RGBA PVRTC 4 they look HORRIBLE (fuzzy, and yes generate mip maps is off). The only way I can get the textures to look like they did in Unity Iphone is to make them RGBA 32 bit. That wont work because my file sizes are huge (4 megs for a 1024 texture). What the hank is going on here? Has texture compression become worse in Unity 3??

Help please! My texture sizes must be small!

Is this your “problem”?

http://forum.unity3d.com/viewtopic.php?t=62231

So if my textures were never being compressed in Unity Iphone, why does it say my file size is 512 kb in Unity iPhone?

Because Unity is telling you the size the texture will be once it is compressed.