Something actually struck thinking about this again. Blue screeen end of level #1? Well LN3 had some seriously nasty copy protection on the original disks. I wonder if the emulator they are using isn't designed to handle all original disk images (not sure what they are using personally but it can't be trained/cracked software surely?) and it's bombing out on the copy protection routines.
I know this because I was asked to provide intro free original copies of the LN games for Retro Gamer's cover CD years back and I was able to do LN1 and LN2, but LN3 needed some serious patching, and there wasn't enough time to get it done. So they used a cracked version instead.