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It's exactly this.
Now, I'm not an instructor, and the highest rating I've attained is PPG2. So some of this I'm a bit fuzzy on because my info is 3rd hand. My understanding is there are no hard and fast requirements. I know that for the ratings, there are written tests you have to pass that are done by the USPPA. As far as the waivers go, I think it's just up to the administrator. From what I understand, there's a bit of an epidemic of administrators who will just give out waivers for cash. I've heard of at least one that will do it for as little as $1500.
FAR 103 and ultralights are pretty chaotic. There's very little structure to any of it.
Yeah the rules are basically "Anything under this weight, speed and fuel capacity with one person on board...stay out of IMC, stay out of controlled airspace, and anything goes."