I'm not seeing it in the new script. Monkey, in the older one(s) inside the dynamics advance section you need to find this...
else
{
if (object.GetCurMatrix().T.y < -10.0f)
{
// trigger restart sequence
timeToReset = deathTime;
if (AI == playerAI)
GetGameManager().GetViewport( "Main").FadeOut( timeToReset);
}
}
... and change that -10.0f to a point lower than the lowest point on your level.
// edit: switched from 'Insert code' to Insert 'quote'. Note to admin... 'Insert code' can have undesirable results.