Hmmm... I just tried the level again. I tried starting in Captain Cook at LV7 and I got through 2,5.
However, if I start from LV1 and get to LV7 I seem to get stuck in the same position. I don't think it's anything to do with the level itself but I'm not sure what could cause that? Some flaw in Captain Cook?
I'll try it from the Home Cooked Levels list.

EDIT: Just attempted it from the HCL list and it works fine, so it must be a bug with Captain Cook.