Yes, I have made 3 levels in the first version of the editor (for unreal/unrealgold) and experimented with Unrealed 3.0 (UT2003 version).
Making levels does not require any knowledge of coding, but for certain effects to be achieved one needs to know how to use specific actors together. Tags and events handle this.
Musicevent(has Tag variable named X) activated by Trigger(has Event variable named X), so when a player runs into Trigger, Musicevent changes the current track. This is the simplest form of using actors in conjuction with each other... The editor even connects a black arrow between these two actors, telling you that trigger activates musicevent.
If you intend on making levels for single player, then stick with unreal 2's version,but if you want to make a multiplayer map, then go with Unreal Tournament 2003's version. These two versions of the editor differ in the fact that Unreal 2 uses a different particle system and different core classes.
Using unrealed is easy and fun to do, I'll point you to a tutorial for Unrealed
Making your first roomThis should be workable on all versions of unrealed...
Did I make this more complicated than need be?