Congratulations on producing such an obtusely challenging puzzle game! Nice retro graphics and sound, too.
To other players:
I managed to complete level 1. The object appears to be to get the red shape to drop through the hole. I apologise for putting a spoiler here, but I really think it will help people get going, given the previous comments: D (left) -> X (down/left) -> D (left).
It might be helpful to press "Y", as this turns on some kind of debug/help mode.