Another way to look at the bent knees is that you also are tucking your tailbone down. You want to relax when you do this and bending the knees helps in this manner.
In level two you tap the tail bone to help open it up. I don't think the bent knees are the important thing. It's getting the hips and tail bone area to relax and open up. Just roll the hips forward and bend the knees to help this.
You get tears when the Heart is opening up, a great thing to let happen.
When energy starts moving it usuaully is from the lower part of the body, you get strong sexual feelings. As it rises you notice that the sexual feeling changes into something else. Depending on how open your energy system is, it will make it to the brain and you'll have a complete enlightenment about.. whatever. You won't really care at that point.