Hi Royal,
I will start with a few suggestions, and I assume others will join in too.
I think it would be beneficial to focus on one level, for now. My own preference, if I was in your shoes, would be to start, by immersing in level I active exercise. I would do one complete set per day, minimum. I would then try to add another session time, maybe starting with a partial session, focusing on the first three exercises, say a half hour involving those three. I would then try to add the 30 minute small universe in somewhere, bring my qigong practice up to two hrs for the day. I would pursue this, until I experience physical improvement, or perhaps for a few months. Long enough to really know the exercises and let them mature, and sit in that for awhile. Level II might be a good alternative at that point, or a different mix regarding active and inactive, etc.. There are few reasons for this. One, in level I you concentrate on the lower dan tien (an energy center). This lower energy center connects well to the physical aspect of your being. It is very direct in that regards. The middle dan tien can affect physical healing too, but in general, not knowing you,or your perception/effectiveness regarding working from that center, I suggest the other, as a starting point. Bottom line, make a choice to start with one or the other, and focus on it.
Regarding breathing in energy: It helps to perceive of yourself as an energy body, or light body. I say this, in contrast to the denseness of being physical. As you relax, you sort of disperse that density out, blending with the universe, for instance. See yourself as transparent, light and relaxed, open... Energy can come into you from all directions. You could sort of visualize the energy coming in like a spiney ball, or like a simple drawing of sun, with all the rays going out, only think of all those rays coming 'in'. Maybe it is just a sense of seeing/feeling that, around the proximity of your body...the energy sort of defining itself , or looking that way as it approaches coming into you, as you are focusing within yourself(lower dan tien). As this is going on, you are aware, or again ,see in your mind's eye, this energy coming from the whole universe, all around you, above and below you... coming from the ends of the universe, the universe close at hand, the aspect of nature, as one whole, around you. All images/aspects of 'universe', universal energy. Distant stars, trees, sky , sun and air... everything. In a sense, as you relax, you open up to 'allow' in all this balanced , new and fresh energy around you. It comes in with your breath, it comes in from all directions into your lower dan tien. You relax, you visualize it, it happens. You can just intend it, start the thought of this happening, just relax, and know that it 'is' happening whether or not you can percieve it. Just stand, and be. Relax and merge. Energy is intelligent. You set the stage and promote the feeling/sensations/visualizations, the energy moves in a natural way. This is why I mentioned 'allow'. A simple relaxing and opening up to the balanced energy of nature around you. As you 'open up', you also promote a state of being that is condusive to releasing blockages, or extra energy/stagnant energy you don't need. Also , energy starts moving through blocked areas within your energy body, through all those channels and meridians. Which I might add, are very real physical aspects of self, not imaginary. Through this whole shifting of your state of being, you quiet the mind, letting it either rest, or assist you in where you are focusing, or what you are visualizing. One is consious of letting the mind rest , not forcing non thought, but letting it rest, run out , gently redirect, come back to focus, etc..as you mind may keep sputtering with random thoughts if you drift in and out of your focus's within the exercises.
Don't be concerned about the color of the energy. Let it be what it is. You may not see that at first, but that doesn't matter. If that doesn't satisfy you, just use white light, or golden light or the color of sunlight. I would just leave that aspect, not predefining it, to see what comes to mind, as you visualize. This way, you are more observer than creator of the color. It is, as you see it. You will develop a sense of this.
You don't drain yourself of energy, if you are breathing it in / visualizing it coming in, from the universe,,you are channelling a limitless source, not depleting yourself in any way.
Who one uses as a master is very personal. There are two approaches. You choose someone consciously, or, you ask for a master,or higher spirit, closest to you, to come forward and help you with your qigong exercise and meditations. Like your energy question regarding color... You may not get an internal visual perception of who comes at first, but you may feel it, or get a sense or idea. This is actually , I think, a very pure way to invite in, who is there, and who wants to help you. It is, less obvious as 'picking' a master. Both are very appropriate, you can't make a mistake here. I also found, in my own practice, I worked with someone different at first , than I do now. It changed, a few times. Eventually, it came into focus. Realize too, that there are pure thoughts, or visions, within your busy thoughts. Things that come to mind, or thoughts, can be divine, and not seem like anything other than an ordinary thoughts among other thoughts. As you quiet your mind, one gets a better perspective on this.
It gets less crowed upstairs, and you can start to discern better, whats just busy mind stuff, and what comes in aside from that.
All this said, don't rush yourself, enjoy your coming into a better state of being and knowing. You can't set all this up intellectually, and have it happen. It is best to just start, and let things come to you through your daily practice. No hurry. You are in the right place, doing the right thing, everything will be okay, and take form as you practice. You may pick a diety you respect, are interested in, or are drawn to...maybe a great teacher or sage, or a past grandparent you had great respect and love for. Again, this may evolve. Being open to what is around you, wanting to come forward to help, is a nice way to go. You sort of allow something less intellectual to happen. You set yourself up for those devine thoughts, versus intellectually generated ones. Again, don't sweat this, you can't make a mistake. It is a win win situation. Allow yourself to learn and experience here. You don't have to sign a contract with your master. Higher spirits are there, very willing to help. That's their purpose. There is great compassion and understanding, hence no mistakes or judgements made, as you learn and shift your level of being upwards. You do the work together, and all benefit, from the top on down. Your work is their work and vice versa. I am not sure, but I think, Roy Rogers is already taken. Just kidding!! Keep a sense of humor in all this too. No need to get heavy. Enjoy your new journey into wholeness.
love,
gallen