Is online create in the game from launch?
No it's not, however it will be included in the first game update after launch. We're working on making this available as quickly as possible, but want to make sure it's right before releasing it.
What does online create actually mean?
Online create, quite simply, is the ability to use the create side of the game in an online multiplayer fashion.
So I can still share my levels?
Absolutely. All of the sharing features of the game are up and running.
And I can still play multiplayer?
Yes. Online multiplayer for playing the game is still very much there.
And I can still create levels with my friends offline?
Totally. Up to 4 players can work together on a single PS3 to create levels. Also, you can still work collaboratively with friends to build levels by exchanging them through the share portion of the game.
From my perspective, which you can take or leave, it is well worth getting some practise in with the create side of the game before trying to use it in a multiplayer fashion as it can be somewhat frustrating to get things done if everyone you're working with is still getting used to all the functions. While it's not ideal to have to wait for this feature to be released, it might actually be beneficial to creators until it happens as you'll be able to work out the tools entirely, and figure out how best to work with others on your projects