custom skin its completely black/transparent

NOTE: THE BUG IS FROM 1.2.0.7 NOT 1.2.0.2 BUT THE VERSION SELECTOR DOESN'T LET ME PICK 1.2.0.7
When I select a custom skin its completely black/transparent, and when I click on the login to Xbox live account button it shows the loading screen of Xbox live, and then crashes, or gets back to Minecraft.