Basically, when you want to play a normal KS level in KSDS, you have to unpack the .knytt.bin file using a PC and convert all .OGG sound files. The music has to be converted to MP3, but the ambience/cutscene sounds needs to be converted to uncompressed RAW audio (8-bit signed, mono, 11KHz). So, if you want to release a separate DS-optimized version of your level, this is the first step. This will save the players a lot of trouble if there are a lot of custom music/ambience files in your level.
Then, you can follow AA's advice and edit your level a bit. KSDS doesn't handle screens with lots of enemies very well, so you might want to remove a few of them. Screen transitions are slower than in the PC version, so automatic shift sequences should be avoided (you could replace them with normal cutscenes). Also, it's easy to run into memory problems if the custom music tracks are too long and/or if file size is greater than 1.3MB. Try lowering frequency and bitrate to reduce the file size (also, downmixing from stereo to mono). 48-32Kbps 22KHz should be fine in most cases.
Finally, the cutscenes can be formatted to fit the DS dual screen. Instead of using a single 600x240 image for each frame (which you need to scroll using the tactile screen), you can include two 256x192 images. Name the files Scene#A.png and Scene#B.png (# being the number of each frame). The Scene#A.png image will be displayed in the upper screen, and Scene#B.png will be displayed in the lower one.