Sorry you're experiencing this problem.
The app is crashing because it is using all of the 512 MB internal memory (as opposed to storage capacity). Whilst we're working on this you can help it by closing other apps that you're not using.
We are currently working on a fix for this and the next update, coming soon, will work fine.
Yes. At the moment we're expecting it in the next couple of weeks. Apple also take a week to authorise updates.