Ok, this is what I have figured out so far. once you drop down the below from the start area, drop your Torch that repells monsters just on the other side of the glass. So monsters wont follow you in later. Then book it to the pit. Get in the cube and get your pick, complete that quest to get the diamond, then pop back out and use the diamond on the Compact cube, use the pick, then move down the pit a little farther. Start gathering Cobble, til you have enough to make 36 stone ladders. Then run back to the start area. Then ladder back up to the top. Once you are up there, gather all the stone fence. Use the fence to build out from the corner nearest the lava, then drop a block of earth where its just at the edge of the Light from the lava and plant your Tree there. When you have plenty of logs, make a ladder going up into the Ceiling of the world and go 2 or 3 blocks higher then where the ceiling starts and start making your home there. The light from the lava is super important. That lava light will help you grow your Pumpkins, and being up high, on a small space will be little chance of a mob getting you
I hope this helps