Milt,
Found the book. The 'star system' was as you described for the RAAF apart from aircrew one. Aircrew one and two both had three stars; in addition aircrew one had a crown above the 'albatross'.
Aircrew under training known as aircrew cadets (as today) had the Laural leaves and 'albatross' but no stars. Aircrew Cadet to Aircrew one wore the badge on the upper arm as per stripes. Masters wore it on the lower arm as now.
The system ran in the RAF from June 1947 till mid 1950.