I know what you're saying. I'm saying you're wrong.
I'm saying the better your school/yr 12 grade does the better ur marks will be
This is true
only when it comes to moderating assessment marks. (Point 1)
James Ruse marks tend to be higher/highest in scaling as the school does good as a whole
No. Everyone who does Maths Ext 2 at James Ruse gets scaled the same way as everyone else in the state who does it. Students at Ruse will have higher moderated assessment marks, but their exam marks will not be altered, nor will the scaling process.
ur marks will get scaled according to how ur school performs as a whole...mt druitt ppl will all do pretty crap for instance....their marks wouldnt get scaled up much if any
See Point 1.
if 140 ppl do heaps good, and the other 20 gets fully oiwned....like 50% or some crap. the 140 ppl's marks will go down alot due to the large deviation of marks so that 20 ppl will drag down the rest
This is true (again, only for the moderation of assessment marks). The further up the ranking ladder you go, the less the students are affected by it, until you reach the top rung where students are not at all affected.
Make sure you don't confuse the moderation of assessment marks with the alignment or scaling of exam marks. There are important distinctions to be made, and the system can never be understood as a whole without them.
For your last example, if that smart guy was ranked first in all his courses at Mt Druitt, his marks would not at all be affected by the school, and he would get the same UAI as if he had gone to James Ruse.