Hey I'm new to XNA so I'm wondering how to builder levels, and more of that fun stuff. So, please respond.

XNA is a game development framework, not a game engine. There are game engines like TorqueX or Blade3D that run on top of XNA, and offer level editors, etc.

Thanks for the quick reply, and I'm getting this message when I run Blade3D:
See the end of this message for details on invoking
just-in-time (JIT) debugging instead of this dialog box.

************** Exception Text **************
System.InvalidOperationException: This device does not support 32-bit indices.  Use IndexElementSize.SixteenBits or a type that has a size of two bytes.
   at Microsoft.Xna.Framework.Graphics.IndexBuffer.CreateBuffer(UInt32 dwSize, UInt32 typeSize, UInt32 usage, _D3DPOOL pool)
   at Microsoft.Xna.Framework.Graphics.IndexBuffer..ctor(GraphicsDevice graphicsDevice, Type indexType, Int32 elementCount, BufferUsage usage)
   at Blade3D.Runtime.MeshX.Blade3D.Runtime.IMesh.Commit()
   at Blade3D.Runtime.CameraGenerator.BuildMesh(IScene scene)
   at Blade3D.Runtime.Scene.<FlushFuncs>b__14(Action`1 function)
   at System.Collections.Generic.List`1.ForEach(Action`1 action)
   at Blade3D.Runtime.Scene.Blade3D.Runtime.IScene.Update(Single deltaTime)
   at Blade3D.Design.Controls.SceneView.UpdateScene()
   at Blade3D.Design.Controls.SceneView.UpdateAndDrawScene()
   at Blade3D.Design.Controls.SceneView.RenderTimer_Tick(Object sender, EventArgs e)
   at System.Windows.Forms.Timer.OnTick(EventArgs e)
   at System.Windows.Forms.Timer.TimerNativeWindow.WndProc(Message& m)
   at System.Windows.Forms.NativeWindow.Callback(IntPtr hWnd, Int32 msg, IntPtr wparam, IntPtr lparam)


************** Loaded Assemblies **************
mscorlib
    Assembly Version: 2.0.0.0
    Win32 Version: 2.0.50727.1433 (REDBITS.050727-1400)
    CodeBase: file:///C:/WINDOWS/Microsoft.NET/Framework/v2.0.50727/mscorlib.dll
----------------------------------------
Blade3D
    Assembly Version: 1.0.3925.0
    Win32 Version: 1.0.3925.0
    CodeBase: file:///E:/Digini/Blade3D/Blade3D.exe
----------------------------------------
System.Windows.Forms
    Assembly Version: 2.0.0.0
    Win32 Version: 2.0.50727.1433 (REDBITS.050727-1400)
    CodeBase: file:///C:/WINDOWS/assembly/GAC_MSIL/System.Windows.Forms/2.0.0.0__b77a5c561934e089/System.Windows.Forms.dll
----------------------------------------
System
    Assembly Version: 2.0.0.0
    Win32 Version: 2.0.50727.1433 (REDBITS.050727-1400)
    CodeBase: file:///C:/WINDOWS/assembly/GAC_MSIL/System/2.0.0.0__b77a5c561934e089/System.dll
----------------------------------------
System.Drawing
    Assembly Version: 2.0.0.0
    Win32 Version: 2.0.50727.1433 (REDBITS.050727-1400)
    CodeBase: file:///C:/WINDOWS/assembly/GAC_MSIL/System.Drawing/2.0.0.0__b03f5f7f11d50a3a/System.Drawing.dll
----------------------------------------
Blade3D.Runtime
    Assembly Version: 1.0.3925.0
    Win32 Version: 1.0.3925.0
    CodeBase: file:///E:/Digini/Blade3D/Blade3D.Runtime.DLL
----------------------------------------
Blade3D.Design
    Assembly Version: 1.0.3925.0
    Win32 Version: 1.0.3925.0
    CodeBase: file:///E:/Digini/Blade3D/Blade3D.Design.DLL
----------------------------------------
DevComponents.DotNetBar2
    Assembly Version: 6.8.0.1
    Win32 Version: 6.8.0.1
    CodeBase: file:///E:/Digini/Blade3D/DevComponents.DotNetBar2.DLL
----------------------------------------
Microsoft.Xna.Framework
    Assembly Version: 2.0.0.0
    Win32 Version: 2.0.11128.1
    CodeBase: file:///C:/WINDOWS/assembly/GAC_32/Microsoft.Xna.Framework/2.0.0.0__6d5c3888ef60e27d/Microsoft.Xna.Framework.dll
----------------------------------------
System.Web.Services
    Assembly Version: 2.0.0.0
    Win32 Version: 2.0.50727.1433 (REDBITS.050727-1400)
    CodeBase: file:///C:/WINDOWS/assembly/GAC_MSIL/System.Web.Services/2.0.0.0__b03f5f7f11d50a3a/System.Web.Services.dll
----------------------------------------
Accessibility
    Assembly Version: 2.0.0.0
    Win32 Version: 2.0.50727.1433 (REDBITS.050727-1400)
    CodeBase: file:///C:/WINDOWS/assembly/GAC_MSIL/Accessibility/2.0.0.0__b03f5f7f11d50a3a/Accessibility.dll
----------------------------------------
System.Xml
    Assembly Version: 2.0.0.0
    Win32 Version: 2.0.50727.1433 (REDBITS.050727-1400)
    CodeBase: file:///C:/WINDOWS/assembly/GAC_MSIL/System.Xml/2.0.0.0__b77a5c561934e089/System.Xml.dll
----------------------------------------
System.Configuration
    Assembly Version: 2.0.0.0
    Win32 Version: 2.0.50727.1433 (REDBITS.050727-1400)
    CodeBase: file:///C:/WINDOWS/assembly/GAC_MSIL/System.Configuration/2.0.0.0__b03f5f7f11d50a3a/System.Configuration.dll
----------------------------------------
dwjtodd-
    Assembly Version: 1.0.3925.0
    Win32 Version: 2.0.50727.1433 (REDBITS.050727-1400)
    CodeBase: file:///C:/WINDOWS/assembly/GAC_MSIL/System/2.0.0.0__b77a5c561934e089/System.dll
----------------------------------------
msvcm80
    Assembly Version: 8.0.50727.1433
    Win32 Version: 8.00.50727.1433
    CodeBase: file:///C:/WINDOWS/WinSxS/x86_Microsoft.VC80.CRT_1fc8b3b9a1e18e3b_8.0.50727.1433_x-ww_5cf844d2/msvcm80.dll
----------------------------------------
Blade3D.Sound
    Assembly Version: 1.0.3925.0
    Win32 Version: 1.0.3925.0
    CodeBase: file:///E:/Digini/Blade3D/Blade3D.Sound.DLL
----------------------------------------
irrKlang.NET-Pro
    Assembly Version: 1.0.1.0
    Win32 Version: 1, 0, 1, 0
    CodeBase: file:///E:/Digini/Blade3D/irrKlang.NET-Pro.DLL
----------------------------------------
Blade3D.Video
    Assembly Version: 1.0.3925.0
    Win32 Version: 1.0.3925.0
    CodeBase: file:///E:/Digini/Blade3D/Blade3D.Video.DLL
----------------------------------------
Blade3D.JigLib
    Assembly Version: 1.0.0.0
    Win32 Version: 1.0.0.0
    CodeBase: file:///E:/Digini/Blade3D/Blade3D.JigLib.DLL
----------------------------------------
JigLibX
    Assembly Version: 0.0.1.0
    Win32 Version: 0.0.1.0
    CodeBase: file:///E:/Digini/Blade3D/JigLibX.DLL
----------------------------------------
paxscript-net
    Assembly Version: 1.0.3925.0
    Win32 Version: 1.0.3925.0
    CodeBase: file:///E:/Digini/Blade3D/paxscript-net.DLL
----------------------------------------
ActiproSoftware.SyntaxEditor.Net20
    Assembly Version: 4.0.242.0
    Win32 Version: 4.0.242.0
    CodeBase: file:///E:/Digini/Blade3D/ActiproSoftware.SyntaxEditor.Net20.DLL
----------------------------------------
ActiproSoftware.Shared.Net20
    Assembly Version: 1.0.87.0
    Win32 Version: 1.0.87.0
    CodeBase: file:///E:/Digini/Blade3D/ActiproSoftware.Shared.Net20.DLL
----------------------------------------
ActiproSoftware.WinUICore.Net20
    Assembly Version: 1.0.87.0
    Win32 Version: 1.0.87.0
    CodeBase: file:///E:/Digini/Blade3D/ActiproSoftware.WinUICore.Net20.DLL
----------------------------------------
egppudkd
    Assembly Version: 1.0.3925.0
    Win32 Version: 2.0.50727.1433 (REDBITS.050727-1400)
    CodeBase: file:///C:/WINDOWS/assembly/GAC_MSIL/System/2.0.0.0__b77a5c561934e089/System.dll
----------------------------------------
System.Design
    Assembly Version: 2.0.0.0
    Win32 Version: 2.0.50727.1433 (REDBITS.050727-1400)
    CodeBase: file:///C:/WINDOWS/assembly/GAC_MSIL/System.Design/2.0.0.0__b03f5f7f11d50a3a/System.Design.dll
----------------------------------------

************** JIT Debugging **************
To enable just-in-time (JIT) debugging, the .config file for this
application or computer (machine.config) must have the
jitDebugging value set in the system.windows.forms section.
The application must also be compiled with debugging
enabled.

For example:

<configuration>
    <system.windows.forms jitDebugging="true" />
</configuration>

When JIT debugging is enabled, any unhandled exception
will be sent to the JIT debugger registered on the computer
rather than be handled by this dialog box.

Could it be my .NET framework's version?

First, please don't paste that huge of a crashlog into the forums. It makes the page long, and kind of hard to read. Maybe put it up on pastebin.com and link it next time.

What you'll want to do is contact the Blade3D guys about it. I'm sure they'll be able to fix this for you much faster since it's their product. Since they are in beta, they would love to iron out things like this before they release. So definitely head to their page and send them some feedback.

From a quick glance, it looks like it's your graphics card. That error (System.InvalidOperationException: This device does not support 32-bit indices), means that you were trying to use an int for the index for a drawing call but your graphics card doesn't support those. So I'd see about trying to switch to smaller indices (like using a short) if you can in Blade3D (I don't know how/if you can), or contact the Blade3D guys and see if they can change it. This is definitely something they should know about.

Ok, and by the way my card does suck:

NVidia GeForce 4MX 4000

No Pixel Shader at all.

The Halo Guy:

Ok, and by the way my card does suck:

NVidia GeForce 4MX 4000

No Pixel Shader at all.

Then the XNA framework, and thus Blade3D, is not an option for you. The XNA framework requires shader model 1.1 to run. You will have to update your graphics card to be able to use the XNA framework or Blade3D.

Than I guess I can't use it because mt card does not support any pixel shader at all.

Replace your graphics card, they're not that expensive. A £50 card like an nvidia 6000 will do it.

that geforce 4 mx is very old.. xna is just too much for that kind of hardware of that times..because the mx was a scaled down version of the 4 more like for casual gaming or office computing .. so its more similar to a geforce 3 as far as i know

im sure that for about 120-150 dollars you can get a pretty decent shader model 3 card right now...which will be able to run every single thing made in xna ..

Well I was earlier plannin to buy a ATI Radeon X1550, but then I spent my money on my Xbox 360.

The Halo Guy:

Well I was earlier plannin to buy a ATI Radeon X1550, but then I spent my money on my Xbox 360.

That is pretty funny actually. Fund the hardware to play on or fund the hardware to make the games.... I apologize for sort of making fun of your situation. I just found it ironic.