Yeah, afaik you can't use a string to refer to a variable name like you can with a layout name (e.g. Go to layout "Layout " & variable).
Was looking to do that myself a while back, and the best solution I found was adding the variables to an array. (thanks to Joe7 for the suggestion)
What also should work is - if you have "levelnames" - is storing at the beginning all names in a global 1d-Array eg:
myLevelNames_Array= ['The first one','Second','Final Stage']
and load the right value on start of each layout to the current Layout:
LevelLabel- set Text -> myLevelNames_Array.At(current_level-1)
<img src="smileys/smiley2.gif" border="0" align="middle" />
Would that do the trick in your case?