I figured it out, when I leveled up after beating Axel I was playing it on speed mode(for me it was holding down space) so when you do level let the game play at normal speed so when the pixelated screen appears just push a and the game will resume(although it'll take a long ass time) and thats when you go into speed mode

edit: also at the top and bottom of the screen there are two yellow bars,these are the reason why it takes so long to go back to the game, so just speed through them and you should be fine.

edit 2.0: got these at http://www.kh2.co.uk/ and rather going there Im posting them here:

Menu Trailer (spoilers)

Intro Movie (spoilers again)

First Cutscene(spoilers)

I can't really decide whethere or not I want to spoiler myself on this game or not, but at the very least I can look at the menu trailer [img]i/expressions/face-icon-small-tongue.gif[/img]