I think I've found the issue!
Looks like there were a few bugs with audio compression resulting in native (i.e. big) files going into the final build. The music score was added after testing on the 3GS was done which would explain why its now crashing on 256MB hardware.
Testing the build now and will have it back to Apple within a few hours if all goes well. Unfortunately I don't have 256MB hardware to verify the fix actually works... but I'm feeling lucky.
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