I think your issue is else where.
The project is very big, no point in attaching it, and trying to replicate the issue in a simple demo project - everything worked.
Well, the error I got was on canvas.initialize(panel) (i used log msgs before & after this stmt. to verify)
The error was memory related (as can be seen from my earlier post)
At first the error occurred in this situation:
I had a full-screen panel, on this panel a long ScrollView, on the scrollview's inner panel a large label (twice the size of full screen). The canvas was init'ed to the very large label.
I realized this was just for StringWidth/Height so I used 10x10 mutablebitmap and a small canvas upon the bitmap to measure.
Then the same error "moved" to another full-screen panel on which I need to draw horizontal & vertical lines all the way to the edges of the screen, so the canvas had to be init'ed to the full-screen panel. This caused the problem.
I know it shouldn't! As u said, 1280x800 is only about 2.6 times bigger than 800x480.
What's more puzzling is that it NEVER happened on a Galaxy S (froyo) and happened very often (every 2nd run) on Asus FT300 (ICS) - same prog of course.