I arrived in the UK from NZ in April 2004 on a work permit. I changed company I work for in 2005 and my passport came back to me with a Limited Leave to Remain Residence Permit. I am a Pharmacist, thus classified as a skilled migrant.

I am about to sit the Life in the UK test - but can see no information as to wether this test has a limited validity? Is it a pass once and valid forever type test?
I want to ensure I have the process right before forking over £££s, I sit and pass (of course) the 'Test' then apply for Indefinite Leave to remain, and in 12 months can apply for citizenship/naturalisation?
Some websites seem to no-longer refer to the ILR step - is it possible to go straight to citizenship??. And is my assumption that naturalisation and citizenship are the same thing correct?