That's correct. Back in the days there was no *, it was added as a clarification. In addition to that came the option of renaming your victorious units.
If you upgrade the unit, it becomes veteran again and the * status is lost.
BTW, there's the newbie thread for questions like these (and undoubtly you would also have found the answer in the faq)
I belive that the asterik means far more than that. It means first of all, that the unit gets a special name, hopefully that name is Chocopuff, the Christmas Anteater, but I suppose thats up to you. Secondly, it means that this unit deserves praise and respect, not to mention a cushy job working as a border guard or as the guy who picks off an obsolete unit in your territory. If your unit has an * above it, then he deserves to be respected and cherised. That is the real meaning of the *.
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