Just some more information here. My issue was as such:

1. All setup correctly based on wiki instructions
2. Can load the editor and start a project
3. Can create a Level, Copying from Basic level
4. Cannot create a Level, Copying from GM - Forest Cave Entrance A. Tool crashes attempting to load it.

Are maybe some levels too large to load in the Editor that was shipped? is there a setting to flip to give more memory? That one loads in the GM tool,but not the editor. I feel like the editor is missing something.