What's the winning tip for Hall of Arms?!

I couldn't figure out the system either. One thing I did notice is that every successful setting had the two levers of the same color in the same position. So there are only 4*2 = 8 possible choices per step, rather than 8*2=16 possible choices.

Okay, I'm dumping this answer everywhere. Stop looking for logic since (in the infamous words of Spock) I fail to see any logic. I did not figure this out myself.

My daughter and I worked on it and came up with the formula...

Phase 1:
2 blues down
2 Reds down
2 greens down
2 yellows down

Phase 2:
Ones next to sponge bob – just before the arms

Phase 3:
All the ones on the right
All the ones on the left
All down but blue and green
All down but red and yellow
All down but green and red
All down but yellow and blue

What the heck is the Hall of Arms!, and what console are talking about. Xbox,Gamecube,PS2,PS, game boys?

b]Im still stuck on level 2. Im on the last arm and I cant get it....
HELP????[[/b]