Currently the editor does not make it easy to create levels for the original Peggle game. The game does not have levelpacks which means the only way of playing your own levels is to overwrite an existing quickplay level. This would involve extracting the files from the .pak file. PeggleEdit will hopefully add an easy way of doing this.
Yes, the demo version of Peggle Nights does not restrict levelpacks. As long as the levels do not set their minimum stage above 2, it should be playable.
This might be because Peggle Nights is running, if not something else has the .pak file open. Turn Peggle Nights off to overcome this error.
You can play your levels in PeggleNights by saving your level pack in the levelpacks folder in your Peggle Nights folder. By default this would be “C:\Program Files\PopCap Games\Peggle Nights\levelpacks" (“Program Files (x86)” on a 64-bit version of Windows). If levelpacks does not exist, create it.
One reason for this may be because you have not completed the required number of stages set by the level. Any level should be playable if the minimum stage on the level properties is set to -3.
This means that out of all the challenges in the game and in all the level packs, two of them have the same ID. Make sure that all your challenges have a unique ID. Picking an ID between 500 and 10000 should lower the chances of a clash.
Because Peggle Nights stops its level packs from being overwritten, you have to keep closing and re-opening the game. Another way to test your level is to extract main.pak found in the PeggleNights folder and delete the .pak file so that Peggle Nights reads the individual files in the folder rather than in main.pak. Then you can export your level and save it over the top of an existing quick-play level such as “bjorn1.dat”. Then you simply reload the level in the game.
Peggle runs in 800x600 so your art should be the same. If you need a reference on how your art would look in-game, use the image found here for reference. Load it into your preferred image editor as a layer on top of your art.
Your images need to be transparent. If they are not transparent then you will get this effect. The preferred image type is PNG which supports an alpha channel. Applications such as GIMP or Inkscape allow you to save transparent PNG files. See GIMP Transparency for a guide to saving transparent images in GIMP.