Towers are bugged, especially castle towers. With Castles, Ballista towers fire arrows, and cannon towers fire ballista bolts. They don't seem to fire cannonballs. CA said this was going to be fixed in the last patch, but it clearly wasn't.
Krag, the ballista-next-to-a-tower thing was likely a coincidence if it happened in a castle. It doesn't matter what you man the towers with, if they are cannon towers they will fire cannonballs even if you have peasants on them. Heck, you can even man towers with cavalry if you put them on the streets below.
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