Hey there Skippy. I take back what I said prior. Your hack was a lot easier to implement than I originally thought. The installation was very quick and easy. The only tiny thing is, I think you may have forgotten to comment in the /wp-admin/edit-form-advanced.php, designating where you made the changes. I did a search for "// SDM 23-05-2004 post_level modification" and nothing came up. Otherwise, all the rest had the comments. I hadn't made any changes in those files originally, so I just replaced them with your modified ones. Great job on this. You have no idea how long I have been looking for this kind of hack.
Now, I just need to work in the redirection hack and change the permissions of the user levels and voila! I'll have what I'm looking for!
Keep up the good work, Skippy.