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I've had the chance to play Living Labyrinth several times now, although always just two-player. As such, this quick review will focus primarily on how the game functions as a 2-player game.
Overview: In Living Labyrinth, players take turns moving their pawns and playing cards to clear their own path through the labyrinth (which consists of a grid of tiles) or block their opponent's path. A turn consists of moving your pawn along a path, playing a card or two (which can rotate, flip, or switch tiles, move a pawn, or move an opponent's goal), and drawing back up to four cards.
Gameplay: I really enjoy how quickly this game plays - not just that it is a short game, but that one turn takes about 30 seconds to a minute, so there is a lot of back and forth. This is especially the case in a two-player game where you only have to wait for your single opponent to play before getting back to the action. Thus the gameplay feels fast and furious. Others have commented on the excess of "Nope!" cards which allow you to cancel your opponent's action, but I think these really add to the interactivity of a two-player game, potentially because you don't really have that "Bash the Leader" problem in the endgame, as you have only a single opponent.
Components: Aside from the miscolored green pawn (it should be purple), which Bucephalus has already offered to replace here: http://www.boardgamegeek.com/article/2873701#2873701, the components are outstanding. And of course with only two players, you can just choose not to play with the green/purple set! The tiles are nicely illustrated and of immensely good quality, being both extremely thick and nicely laminated. Likewise the cards are of a good stock and nicely illustrated, although each has the same background, making easy differentiation and quick recognition of the various actions difficult.
Fun: This game is fun! No matter how well-designed a game is, it still needs to be FUN. And this game delivers. I'm always up for a game and usually up for a rematch afterward.
Family-Friendly: I played this game several times with my 7 year old nephew and he picked up on quickly, did well, and enjoyed playing. Kids should have no problem with this one.
Overall: Living Labyrinth is a fast, fun two-player game which has just the right amount of interactivity and "screw your neighbor" to keep it engaging, without being frustrating. As a two-player game, I highly recommend it!