I'm sorry to be the bearer of bad news but your level is all but unplayable. The second floor is way too busy, have you actually even played through it yourself?
As a piece of constructive criticism, though, try to make use of the "sign area" objects rather than huge swathes of signs copied across a screen. You can find information on the sign area objects (and all the other objects too) in Exp HP's Object Compendium thread. There are many other useful threads in the Knytt Stories Level Editing Support board aswell.
So by busy do you mean there's too much shit on the screen or what?
And also by answering your second question, yes, I have in fact played through it. Multiple times. On different computers. I've also had other people play it, and it is quite difficult for some, but it's supposed to be that way.
Also, don't be ''sorry'' for for being the bearer of bad news, as constructive critisism is best critism. Now, if you just wrote that the level was unplayable and nothing else, that would be bad, but you actually went ahead and wrote some useful stuff. as I wrote that this is my first level, It's nice to hear how to improve future levels.