I've only used Blender for creation of characters and other things that would be used in a video game. Blender can be used for level creation, but in my opinion there are other free tools out there that are must better at level design. Try this approach:
- Use **Google SketchUp** (free) to build the level and use their export to COLLADA feature (it is only export available in the free version)
- Use **Blender** to import the COLLADA file so you can texture map and add detail. I would save that back into the native .blend, since it works well with Unity
- Finally, drop into **Unity3D** project view as a working model
Hope this solution is useful to others.
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