At this point in the game, you are inside some type of hall with a checkered floor. An obvious exit is to the far upper right, which is sealed off by a gate.
Your goal is to move toward the center of the screen. Suddenly without warning, a knight-like figure transforms before your eyes to the far left. Below his feet a the floor becomes red and casts out in a downward motion to the right. Jumping on this red floor will quickly end this level. It can also change direction after occupying a few squares.
The knight will turn a green color indicating that you can attack him. You must be in the square beside him and then attack with your sword by pressing the fire button in a repetitive motion.
However at first the green color only lasts a short duration and then he turns black. The knight can withstand more of an attack when it bears the black color. Also once the stream moves around for a certain time, it will soon fade from view as does the mysterious knight.
The knight will eventually rematerialize in an opposite corner of the screen. Once again you will approach him and begin attacking with your sword, which weakens the protection around the knight. After multiple attacks he will remain in the green color for a good while, which will allow you to take him out quickly.
With each blow of the sword, you arrive closer to your goal of defeating the knight. Continue to attack him with your sword.
After mulitple attacks, the knight will remain in a red color. If you can strike him when his outward appearance is red, he will be destroyed.
Finally the gate will begin to lift. The red streams will still be trying to kill your player, so be certain not to jump or allow them to occupy your space. Jump away from them when you see the stream headed toward you. After this you can proceed through the entrance to the final level to make combat with the mighty dragon!