LittleBigPlanet 2 Walkthrough - Chapter 4: Flying in the Face of Danger
3Full Walkthrough: http://www.gamefront.com/little-big-planet-2-walkthrough/
This level is a pretty standard side scrolling space shooter level, with all of the Prize Bubbles pretty much in plain sight.
Some tips to keep in mind are to always mash "X," and don't hold it down. You'll shoot much faster. Also note that you have to be pretty accurate to take down most of the enemies here. For the main enemies that shoot purple dots, aim for their eye to take them down.
Note that unlike most arcade space shooters, you won't die or even take damage by hitting a wall (unless that wall is covered in pink stuff.) If you need to hug a wall to avoid a bullet, go for it.
Halfway through the level, the speed will increase, making it important to stay near the left side of the screen and just mash away on the "X" button so you can destroy the obstacles that appear.
Towards the end, the perspective will switch to a more top down style shooter. In this mode, enemies will move toward the bottom of the screen much like in the game "Space Invaders." Predict their path and fire at where they are going to be rather than at where they are.
Full Walkthrough: http://www.gamefront.com/little-big-planet-2-walkthrough/