Hi Loirae,
As I am sure you have sussed out - at the very beginning you need to fill the 2 false squares.
Fill Stinky's square with a keg.
Filling the square below the yellow gate can be done in 2 ways and both are correct although it will change the way you 'use and then loose' the red devil at the end.
Use 2 Prisms :-
Requires faster fingers as you will need to get 2 of them to the right of the blue gate at the same time - you will also need to use the conveyor timer button.
However, you then will have a prism left over for Peegue and he can 'use and loose' all by himself.
Use a generated Keg :-
Much easier to do as you can put the 2 prisms in the water square lower down in the level, and put the 3rd prism on the round conveyor button.
Get the generator working and use 1 keg to fill the square below the gate - no fast fingers required.
However, you have no prisms leftover so another character will have to release Peegue and help in the 'use and loose' part.
Hope this helps,
Malcdelsol
It's definitely one I can get my teeth into 
