Does the demo end at Koopa Castle? I ask because that level is impossible, but there are still other levels left after that one.
Anyway, my review:
Well, it's quite obvious from the beginning that this is an amateurish first episode, even if it wasn't evident by its name and common cutoff (here are just 2 examples of cutoff):

This isn't
the first, or even
the second time an SMBX episode was called "Super Mario Bros. 4" (even if the second one was never finished). Also, there's a background2-27 sprite-swap with an amateurish logo on it, but the problem with it is that it was saved as a GIF directly, meaning the background is grainy and appears like that in-game. If you want to make a sprite-swap, save it as a PNG file, then put the file through an online converter like this:
http://image.online-convert.com/convert-to-gif (alternately, you could use Paint.net and set dithering to 0 when you save the image as a GIF).
However, the neither the name nor the graphics are what makes an episode; the levels and the level design do, but they're also quite amateurish with background objects used instead of blocks and NPC generators coming out of the ground:

Seriously, if you're going to have an NPC generator, at least put it next to a pipe so it will look like they're coming from the pipe instead of just ground.

But the worst design choice in the episode, aside from stealing canon Mario levels to pad out your episode, is the use of SMBX's bosses by themselves in flat, empty rooms. Not only is this lazy design on your part, it's also boring to the player since he/she has already fought these bosses in canon Mario games, and fighting the exact same boss the exact same way just gets boring after a while. I recommend you make custom bosses using
this tutorial, but if that's too complicated, I made a tutorial on how to make pre-programmed bosses fun without having to put forth much effort:
http://www.smbxgame.com/forums/v ... =81&t=8890
Now, on to specific stuff (levels are referred to by their file-names since that's quicker for me at the moment): In lvl 1-1, the dragon coin inside the egg in Section 3 is impossible to get since it has a block on its left and a Nipper on its right, meaning the player can't grab the egg to break it and get the dragon coin. Also, collecting the Boom-Boom's dragon coin triggers the same event that is triggered when the Boom-Boom is killed.
In lvl 1-2, the placement of the first waterfall looks awkward, and swim-able waterfalls is also awkward. Looking through the level in the editor, I noticed that you put in a few unintuitive secrets; how is the player supposed to figure out that he/she is supposed to fly above the first tree, push down while falling onto a background object or swim up a waterfall into what looks like a rock ceiling (it's not like there's an opening that goes off-screen)? Plus, even if the player does think to use the Racoon Leaf to fly above the first tree and finds the vine that leads to Section 4, there's no keyhole or locked door at the end of the section (there's a door graphic, but no door warp), so the player will get stuck there and be forced to kill himself/herself. Those vanilla GFX trees are pretty clever, though.
lvl 1-3: you used "Attach to Layer" incorrectly; the red coins only need to be on the "red coin layer," not attached to it. "Attach to Layer" is only used if you want a block, background object, or a certain type of NPC to move the same as another NPC (the blocks/background object/etc would be on the layer, then the moving NPC would be "attached to the layer"). Because you attached the coins to their own layer, the buried coin will shift position randomly when the player lets go of it (because the player has to let the coin go in order to collect it), and if the coin gets stuck in the ground (the most likely outcome), the level becomes impossible to beat since the level-ending orb is on the same layer as the star. Looking at how your event is set, I'm surprised the coins show the exit layer at all.
boss1:
Why even have a star in the level if you're not going to make it much of a challenge to get? It's practically in the player's way and might as well not even be there.

Multiple levels (at least 2): Don't put buried NPCs on a projectile generator since, when the player picks it up, he/she will be launched into the air. You should use warp generators instead.
lvl 2-1: The part just after the player enters the pyramid is quite annoying since the Wrap-Around causes multiple flames to shoot across the screen that the player has to avoid while waiting for the Lakitu to throw a bomb so the player can blow up the brick. I recommend removing one of the Bowser Statues. Also, the grey brick tiles you used can be destroyed by the hammer suit, and if the player does this, it apparently breaks the level; you might want to change that. Plus, the player can completely bypass the three red Piranha Plants near the bottom of the section by going right while standing on the pipe since the section has Wrap-Around enabled; you may want to add a wall there so the player can't do that.
A couple more things about that level:
This block is impossible to hit since there are no bombs in this section. However, it's still possible to get the star, even without Yoshi, since the player can just bounce off the giant shell.

Why do you have a long, empty hallway before the boss? It's not like you made a custom boss that needs a large section; it's just a boring ol' Birdo fight.

lvl 2-2: Stealing is wrong, kids (and lazy).
tower2:
WHY?? Guessing games are no fun, especially if the wrong answer results in an unavoidable punishment, and especially if the player doesn't even realize that's what's going on in the first place!

lvl 2-4: The way the player has to get the star is quite clever, but the blocks leading up to where the Lakitu spawns are too high (the Lakitu would run right into me almost each time I played that level) and the pipe warp at the end doesn't have "Level Exit (Ends the level)" checked, so it does nothing.
Also, attempting to go to the Advance World just leads to a lone level icon and the player has to go back.
lvl 2-5: I know that this is supposed to be a ghost house, but the secret star is unintuitive because, aside from the big boo and the spikes covering the bottomless pits, stomping the Goomba doesn't make any noticeable change to the left side of the section, meaning the player wouldn't think to backtrack after killing the Goomba. I recommend having the Goomba make the first platform taller than the second one. Also, while I appreciate that you added extra hazards to the big boo's boss room, the fact still remains that it's a big boo, and big boos were never meant to be bosses (their AI is the same as normal boos). This, combined with the fact that there are, like, a hundred weapon blocks in place of the floor, means that all kill-able enemies can be quickly taken out and the Bowser Statues, which are placed above the blocks, can also be avoided with barely any effort. Despite all that, I appreciate that you recognized that the NPC by itself would be too easy without additional NPCs and tried to mitigate that.
boss2: And we're back here. Like I wrote earlier, there are no warps to link the level's sections together, so the level is impossible.
In conclusion:
The problem with reviewing a demo is that I can never be sure what's a mistake and what's just a placeholder that would be replaced with or without feedback. I'm a freelance reviewer, not a freelance beta tester (though this isn't the first time I've reviewed a project on request). I'd rather you finish and fully test your episode to make sure all of the major thing work (like events, warps, level paths, etc.),
then ask other people to go behind you to see if they can find something you missed.
As for what's here, even ignoring the amateurish design, it's nowhere near a presentable state, but I'm sure you knew that already since it's still only a demo. As long as you play a bunch of levels that are rated as "pretty good" or "the best," as well as continue to practice making levels (and testing them before releasing them), I'm sure you'll improve over time.