Resolving overallocation by calculation??
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Dont worry about working out in detail and in advance the perfect resource solution.
Just start assigning new, different resources to the tasks where the the currently assigned resources are currently over-allocated. Choose the tasks for which the resources are most over-allocated, or the tasks which get most severely delayed by leveling.
Also, choose the tasks in the near future.
It doesnt matter so much if the tasks in the more distant future still have over-allocated resources or if they still appear to get severely delayed.
This will cause an improvement immediately, in that the resources will not be quite so over-allocated and the leveling wont cause such severe delays.
Then just keep doing more ofd the same until the over-allocation disappears and leveling doesnt cause any task delays.