Okay, first off, I have the PC version and had the exact same problem. The landbridge to the jellify water village didn't surface.
Here's what you do (at least what helped me) Turn your resolution down to 600x800 and for some reason it works then. Add a little dirt and once you have the jellifying and amplyfying this entire stage is a cakewalk.
So yeah.. maybe thatswhy no errors occur on the 360, lower graphics by deafult... hope this helps!