  The properties of the localized states of a two component Bose-Einstein
condensate confined in a nonlinear periodic potential [nonlinear optical
lattice] are investigated. We reveal the existence of new types of solitons and
study their stability by means of analytical and numerical approaches. The
symmetry properties of the localized states with respect to the NOL are also
investigated. We show that nonlinear optical lattices allow the existence of
bright soliton modes with equal symmetry in both components, bright localized
modes of mixed symmetry type, as well as, dark-bright bound states and bright
modes on periodic backgrounds. In spite of the quasi 1D nature of the problem,
the fundamental symmetric localized modes undergo a delocalizing transition
when the strength of the nonlinear optical lattice is varied. This transition
is associated with the existence of an unstable solution, which exhibits a
shrinking (decaying) behavior for slightly overcritical (undercritical)
variations in the number of atoms.

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