Hey guys,

How the heck does the password system work in this game? I didn't get any passwords while playing and the only option I have when I go to the password screen is "skip this level" for levels I have all the icons for. I'm really confused here exactly as to how this is supposed to work.

Any suggestions would be much appriciated.

aren't they written in the background of the levels when you play them ?

It's not really a password system; it's just poorly named. As you said, you need to collect the icons in a level and then you can skip that level in the "password" screen; that's all there is to it.
I'm guessing the developers just copy-pasted the menu code from EW1 (which does have a regular password system) and then forgot to come up with a better name for this icon-collecting thing. :)

Bah. Now I have to go through the early levels again to get all the icon. Pffft.