Hi,
First, concerning images, now, the logo provided is standard bmp file with RLE compression. Image2Primer was using the old Primer format, that used only non compressed bmp images. Now, you can create your images in 256 colours RLE bmp format, then convert it to header file with the BMPConverter tool provided with CircleOS sources.
If necessary, if your images are too big, you can modify the linker script ("Primer2_Circle.ld") in order to increase the FLASHDATA area, but it will reduce the area for applications.
Secondly, the CircleOS project is provided by default in "non debug" mode. To debug it, change the Ride7 project, parameter "GCC Compiler/Compiler Output/Debugging information" to "Debug".
Yves