LOL. I tried your second patch quite a bit last night. It is very playable but pretty much impossible to finish. Which is expected of course. I had it freeze on me at a couple of places. One was probably due to the library as it told me to type some weird symbols and then it just froze. I noticed it won't allow you to type the yen symbol (or I just don't know how) and it will not allow you to type an apostrophe.
At a few places that it froze, like in level two right after the challenge when you go around the corner and the two people are being attacked, the next time I played it went through it no problem. The other place it froze was on stage 6 and I was too tired to try again plus it was so hard becasue most of the 'words' were just like 20 random letters thrown together. You can see this example in the demo mode during the instructions.
But really this is awesome and I can't wait to do some testing once all libraries are inserted. Do we have any idea how to create our own word files for this? We could have an Arcade-projects library file. LOL.