What is the amount of memory an app can take before getting kicked by iOS? Does the amount of memory depends on the device version? I have developed an app which is using 30+ mb and its getting kicked on iPhone 2g. Can it work on iPhone 4 or 3GS?
All your application's resources on an iPhone 2 should probably stay at less than 20 MB. You can go a little over, but that's it, otherwise the memory warnings will occur. There's only 128 MB of total physical ram for everything - that's the OS as well as your own app.
My experience with the iPhone 3G is that you should try to stay as small as humanly possible--build your data model with ditchability in mind, because you'll need to ditch. 20mb is bumping against the limit. 25 MIGHT be okay if the phone has been rebooted recently. You'll probably never get 30mb.
By contrast... I managed to prompt a memory warning on my iPhone 4 once, but it was due to an infinite loop bug that downloaded the same image file an infinite number of times. In other words, it took something REALLY drastic to crush the 4. Not that you can ignore memory management completely (a leak is still a leak), but for sure you've got some breathing room.
The 3Gs is somewhere between the two. I don't have one to test on, but I'd expect its performace is more 4-like than 3G-like, because while the on-board memory doubled from the 3G, the OS is still taking up the same space, meaning all of the new memory is yours to play with.