I have ran the game level and it runs with out any errors for me.
Movies are playing, music is playing, images are coming up.
I am guessing you have all the runtime stuff install because you made the game.
You friends computer might need the stuff installed from this folder on your machine.
Game Guru\_CommonRedist
Run both programs in there to install these on their machine. Have them try again please.
Now the issue with running this as the second or third level could be that the machines are running out of memory.
A bug was discovered that suggests that memory does not clear completely between each level.
This may cause some files not to get loaded, and produce these errors for you.
A solution to this has not been made in the betas yet. But it is logged as a bug, and there fore will be looked at.
Intel(R) Core(TM)2 Quad CPU Q6600 @ 2.40GHz, 2400 Mhz, 4 Core(s), 4 Logical Processor(s), 8gb RAM, Nvidia gtx660, Windows 7 Pro 64bit, Screen resolution 1680 x 1050.