This first part is actually very simple. Basically, just stay in the center and fire. The larvae just swims around in a circle, then dives down. Get ready, because it will jump out of the water, allowing you to cause some damage to it. However, when it crashes into the water, make sure you jump over the shockwave or it will knock you into the poisonous water. Occasionally, it will send some Dark Shredders against you. Just shoot them with charged shots or missiles. They are mainly there for refills. Eventually, the larvae will emerge from the water, exposing its front. Use Light Beam charged shots as many times as possible. You should leave this battle with almost all of your health intact. You will also be constantly healing due to the Light Crystal field. Eventually, it will "die".