I hope you are right, that you don't have to pass Life in the UK (Britishness) Test.
In my opinion you may have to take the test and you will have to go through the same procedure as a permanent Resident or ILR holders. You can read more and also find info on forms from this site:
http://www.ind.homeoffice.gov.uk/applying/nationality/advice/bn2
Registration as a British citizen
9. If you are a British Overseas citizen, you are entitled, on applying, to be registered as a British citizen after you have lived in the United Kingdom for five years (see Note F). You may be absent from the United Kingdom for up to 450 days during this period without losing your entitlement to be registered, but you can only be absent from the United Kingdom for 90 days during the year immediately before you apply. The Home Secretary may accept longer periods of absence in the special circumstances of a particular case. You will normally have to be free of restrictions under the immigration laws throughout the year before you apply.