Great game as always from you.
Really nice feel, pretty much like last years contribution, but much more fun gameplay!
Unfortunately I can not start level 4 because of this:
Exception in thread "Thread-16" java.lang.OutOfMemoryError: Java heap space
at java.awt.image.DataBufferInt.<init>(DataBufferInt.java:41)
at java.awt.image.Raster.createPackedRaster(Raster.java:458)
at java.awt.image.DirectColorModel.createCompatibleWritableRaster(DirectColorModel.java:1015)
at java.awt.image.BufferedImage.<init>(BufferedImage.java:315)
at A.run(Unknown Source)
at java.lang.Thread.run(Thread.java:680)This is on OS X Lion, Java 1.6

The game does use a lot of memory (I create 2 2200x2200 RGB BufferedImages), however, it creates them on every level and throws away the old ones, so I'm at a loss as to why it would make it all the way to level 4 and then crash. Might look at putting in some memory flags on the Java4K sites applet code if needed.
Couldn't use handbreak either on OS X. HTML5 seems to work fine though.
Now changed the handbreak to use the Shift key.