Quote: "I'm not sure if you saw the post previous to your post, because of my status my post was held back and only got posted after yours."
No I didn't , so let me answer that one first;
Quote: "I've read a lot of threads on this forum and everybody is recommending to limit the Atlas to be 1024x1024, but I can't seem to find the actual reason behind it, other than 'it uses a lot of memory'"
It's a hardware limitation on some devices with a variety of results, some scale the images, others simply don't load them. So it is a recommendation for the sake of maximum compatibility.
Quote: " I can't logically split the animations into groups of 16 (to fit into 1024x1024 spec), can you help advise me of another method (if there is any) ?"
If all the images are 230 x 230, you can use a combination of atlas textures and animation tiles.
You can Tile the 230x230 images in a 1024x1024 image in a 4x4 grid - leaving a gap on the right and bottom (A lot of devices handle images with power of 2 sizes much better).
Next, create a subimages file for the image with an entry something like;
animagrid:0:0:920:920
Then you can load the subimage "animagrid" and it will be a 920x920 image, which means you can use SetspriteAnimation( sprite , 230 , 230 , 16 ) and setspriteframe() rather than load a subimage for each one.
Since several sprites are then sharing an image, you can set one sprite up, clone it and you only have to change the frame number and position.
Quote: "between 256 LoadImage calls of small 230x230 images vs 16 calls of 1024x1024 images, which do you know will be faster?"
The 16 calls will be faster...
...but will need to be uncompressed into larger blocks of memory