In order to trap the penguins, you'll need to break the iceberg into small chunks. You do this by melting lines in the ice. If a penguin hits a line in progress, however, it vanishes with a loud noise, and you lose a life. Once 80% or more of the iceberg is gone, the remaining chunks are small enough for shipping. Of course, if you manage to get rid of more than that, you'll save on postage, thus earning you exponential amounts of Geek Cred (a.k.a. "score"). After you ship off one batch of penguins, it's time to move on to the next. Each subsequent 'berg will have one more penguin, and you'll have one more life.