In order to advance to the next area, Mickey must raise the Notilus and get to the Projector Screen by either going up high and painting in some gears to levitate it or by breaking a Gremlin Cage. Gremlin Starr will easily raise the Notilus once he has been saved and you may advance.
Raising the Notilus
In order to Raise The Notilus, you need to fix the cranes. At the entrance, you'll see two big columns at your left and right. Look to your right and you will see a thinner pool, jump over it and look to your right again. There should be a tiki face, and rock ledges to get up there. At the top of the head there's a thinned gear, paint it and you will see a path open to get over to the building with a trapped Gremlin Roger inside. Go back to where you started the level and go straight, or left from the entrance through the thinner pool with your new made path.
Once over, go to the column, you'll notice some are moving and some are not. The point is to get the platforms level so you can jump on them. Paint the gears for the platforms to turn, and thin the gears to stop them. Do this to make your way to the top. Now look over to the building that has the trapped gremlin, you'll see the roof can be thinned, once you thin it, jump down over to it and free the trapped gremlin, he will fix the gears on top of the columns and raise the Notilus, and a projector will open.