I like the idea of having one screen for gameplay, and the second screen displaying status information (health, items, etc.)
First screen:
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Health: 90
Items:
Fire Flower (x2)
Super Mushroom (x4)
Starman (x3)
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Second screen:
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Mario moves around the level in World 1-5. He jumps over a Goomba and hits a ?-Block containing 10 Coins. Mario then runs over to a Warp Pipe, enters it, and emerges in an underground tunnle.
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See my point? Put the status information on the separate screen, so it does not interfere with the gameplay.