I put 4x4 imageView to an activity(BoardActivity), and user can change the images by clicking them. With HTC Desire (Android 2.2.2), I got OOM(Out Of Memory) in about 30 min
To reduce memory, you can try out these things :
Edit : based on the conversation in the comments : The bitmap returned by BitmapFactory.decodeStream(fis, null, o) is not assigned to any variable and hence is not recycled. Android 2.2 and 2.3 will have leaks in this line.