Is there a way to get a WED in the Lite-C free version? If not, what is the best way to create levels, or are there any ways to create levels?

create levels out of models

I'm using maplet to create my levels
kinda limited but free. export .X format

http://www.blitzbasic.com/Products/maplet.php

You cant load the wmb levels in free Lite-C,
so you need to manually create your level out
of entities (Models, terrains, etc)

You can start out by creating the levels "by hand" in the code,
and if you are more experienced, using your
own import-function for the positions of the objects.

You could even create your level in Excel, and
export the tables to a textfile, wich you use to
place the objects.
There are many approaches I could think of, even using
a tile editor.
But if you cant get anything like that to work, just buy
a basic version of game studio, then you have WED...

now that you say it i am not sure but afaik it's possible to load WMBs in lite-c(at least the paid version)?

not in the free version, as I wrote.
Not shure about the paid one.

I tried someday with Lite-C free and i made a level using my A7 Commercial. And i exported it to WMB. It works fine with it but some features dosen't work, like Shadow Mapping etc...