D. Geezer,
As much as i hate to admit it.... Bing is coorect. Failure of grading does not mean automatic expulsion from BRNC.
The Navy does emphasize the Officer before pilot system, hence you do 2 terms of naval general training before doing any specialist training towards aviation. Pilot grading is a fun and stressful time and they are looking for potential over ability. There is nothing more you can do then enjoy it, work hard, and be yourself. The same qualities apply to AIB and BRNC.
If you were to fail grading then there are many offers available. Feneris is a bit harsh in his wording. A lot will depend on your background (degree, etc) and also how you did in the 1st two terms of Dartmouth. The options are to join the Warfare branch, or supply branch, or engineering if you have a suitable degree. Observer and ATC grading is also an option.
The best attitude (in my mind) is to enjoy it. If you are not enjoying it you are in the wrong job. If you are enjoying it and not stressing then the best will come out.
With regard to what the RN wants from you.....
They are currently looking for non-grads ideally. They want to reduce the average age of guys getting there wings. They are still recruiting guys up to the age of 26 (grads or non grads) but there is now the in-service degree which looks like a good option. Joining the Navy as a midshipman as its pro's and cons, but the main 'pro' is that middy tabs are the ultimate **** deflector.
The AIB will be looking for someone who is very pro-navy and someone who is enthusiastic and willing to learn about the RN. A good ground knowledge of current ships and operations is a useful thing to have, but they are more interested in YOU, then they are about your knowledge of the Navy. They can teach you about the Navy, they can only aide you in good leadership qualities and being a good bloke.
Good luck, let us know,
Yours aye
TR
Bing - see you back at EGOS soon