Preheat oven to 350 degrees F (175 degrees C). Grease and flour two 9 inch round cake pans.

In a large bowl, combine cake mix, pudding mix, 1 cup of water, oil and eggs. Beat for 2 minutes on high speed. Pour batter into greased and floured pans.

Bake for 25 to 35 minutes, or until toothpick inserted in center comes out clean. Cool 15 minutes in pans. Remove from pans and cool completely on wire racks.

Meanwhile, in a small heavy saucepan, combine sugar, 2 tablespoons of water and egg whites. Cook over low heat, beating continuously with electric hand mixer at high speed, until soft peaks form. Remove from heat. Add marshmallow creme and beat until stiff peaks form.

To assemble cake, split each layer in half horizontally to form 4 layers. Place 1 layer on serving plate. Spread with 1/3 cup of the preserves. Top with second cake layer and spread with 1/3 cup preserves, do third layer the same way. Top with fourth layer (DO NOT spread preserves on top of fourth layer).

Frost sides and top with frosting. Swirl small dollops of preserves in frosting. Store in refrigerator.