There is documentation included. There is a way to check for ps 2.0 support, its in there now, and it will pop up an error.

You could run the levels without the Sphere effects, but they would be just like normal models then.. not very good looking.. this could be done however.

To do this, just dont init the Sphere Engine and change the materials setting around. Sphere is really meant tfor the latest cvards to run, so it is not much use on oldert cards. Also, Geforce FX cards wont run at all yet. Hopefully this will fixed, but i have no idea why they dont work, so i cant put a check in there. if i can get ahold of one i can try to fix this.

Bascially, just develop maps in max or maya or whatever...then place them in wed. Inside maps should be made out a few large models for the shell of your level, and then some more models for other details..the fewer models the better making up your level. PLace Sphere lights like you would place dynmaic lights in WED, you attach an entity to the Sp_Light action, and place them, not more than 6 can be visible at once.

Outdoor levels are even simpler to make, nothign special is needed.. just that water must be at 0,0,0 and there must be an object attached to the sunposmodel action.. this will give the correct cast shadows for your WED sunlight.