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Papering levels refer to breeding ability. For stallions, from best to worst quality: *Star, A, B, C, Failed. For mares: *Gold, Blue, Red, Yellow, Failed. C and Yellow papers are normal for foundation horses, unless they are exceptional producers, although some regular foundation mares may paper Red. It may take generations to achieve Star and Gold stallions and mares, unless you use boost tokens.

PT scores refer to training ability. The higher the PT score, the higher a horse will advance in the showing levels. However, it is best to have a wide range of PT scores, because most horses with PT scores above 9 can make money, and if they level off in a good place, they can make a lot of money. However, it is now important to show all horses as often as possible, because they will make points for showing unless they come in last in a class, and you will be paid a showing bonus equal to half the total number of points held by your horses each week. Both entry fees and prize payouts are now relatively low, so it pays to enter horses, even if they are not coming in near the top of a class. The 19th highest points horse in my stable has a PT score of 9.8, and the 25th has a PT score of 9.6, so don't scorn the horses that have scores under 10.