There are three parts to each level: figuring out how to arrange the letters, figuring out where they need to go and then actually getting them there. The first part is usually the easier task, but if you do need help, you can always click the hint button to get an idea of the word(s) you need to spell. Then, you have to decide where to put themit's not always obvious right away and you might sometimes play around with the blocks for a while before realizing that you're just going to have to put the words somewhere else.
Alphabox recognizes solutions apart from the one intended, so sometimes you can get creative and mix the letters around, saving a few moves. If you do screw up, there's both an undo and a reset button, although since the [arrow] keys are used for movement, it would be nice if there were hotkeys to match. There's also an easy-to-use level editor, so the possibilities are as endless as the English language.