2d Sprite Sheet on characters ruined in unity

My 2d Sprite Sheet gets messed up when i import it into unity.

1. here is a Screenshot on my computer Unity free on windows platform.

1. Here is a Screenshot of unitypro iphone game platform.

Can someone help me solve my problem. Why do my textures get so blurred. Are my assets not getting imported properly. Is there a simple change that I can make to all the Texture importers on my sprite sheet textures?

2.to do the animation I am using this script on each game object.: http://unifycommunity.com/wiki/index.php?title=Animating_Tiled_texture

3.each of my game objects like player and enemies who have animations have planes on each side loaded with the required sprite sheets. Basically the little player at the center has a plane on each side (front and back) Each having a texture on it, which is a sprite sheet. The sprite sheet has constant offsets which can be changed by using the script above. This animates my characters beautifully on game in the first screenshot. On the iphone unity platform (build settings>switch platform), they become all muddy and messed up as in screenshot 2. The animations s till are happening.