Hey i figured this out by updating to the latest Universal image loader released and the simply added this few lines of code
ImageLoaderConfiguration config = new ImageLoaderConfiguration.Builder(
getActivity()).build();
ImageLoader.getInstance().init(config);
options = new DisplayImageOptions.Builder()
.showImageOnLoading(android.R.color.transparent)
.showImageForEmptyUri(R.drawable.cloud)
.showImageOnFail(R.drawable.cloud).cacheInMemory(true)
.cacheOnDisk(true).bitmapConfig(Bitmap.Config.RGB_565).build();