Sam_Protagonist has confirmed on the official PS boards (linked above) that the online level creation mode in LittleBigPlanet will not be accessible at launch as originally planned.

According to his post, the functionality will be implemented through a post-launch patch due out at an unspecified date, however, users will still be able to create levels with friends offline and share them online.

To quote: This is correct. The ability to create with your friends online will come as part of the first major update after the game is released. Offline creating with up to 4 people on one PlayStation 3 however is available right from the get go.

Just to clarify what this means for the game, here's a few more FAQs -

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, both online and offline multiplayer (or any combination of the two) for playing through the story, or any downloaded levels.

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. More PlayStation 3 News...