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[A Black Falcon]

I've read a lot of interesting things about the FDS along those lines. I've read VERY thorough documents all about both Dream Factory: Doki Doki Panic, SMB2, and Super Mario USA. It's weird that, considering saving had been removed from the game, they had to go even further and limit your continues to 2.

I agree, that is annoying. No other Mario game has a continue limit like that... Super Mario Land does have limited continues, but it's "you get one per 100,000 points", not "you get two period". They shouldn't have done that.

Anyway, for now I'll say that Lost Levels uses the same "continue" system as SMB1, hold down B (or A?, I forget the button) after a Game Over and you can continue from the last world (but not level). In SMB1 it could be done an infinite number of times, but it was lost when you turned off the system. In Lost Levels it seems to have no problem remembering the last world for this "trick" even after power is cut. "Seems" because it's, again, Nintendo's emulator here, so they may have some special bookmarking they're doing.

Huh? In the rom, when you get game over, you get a menu where you choose between Continue and Reset. Choose Continue and you start from the first level of the world you died in. Choose Reset and you go back to the main menu, and I don't believe that holding either A or B down when you press start on the Mario or Luigi screen does anything, from that screen you can only start from level 1... and that's the only screen you see when you turn the game on, there's no way to start from where you got to last time.