Hi Heidi,
Your basic outline of the steps is pretty much right. I don't know very much about Working Visas, but this is what generally happens if you apply for Permanent Residency. I'm sure someone who knows about Working Visas will join in later....
If you are granted Permanent Residency, you will get a Residency Visa. This is a blue sticker in your passport and will allow you to enter New Zealand to live and work.
When you arrive in NZ, you will be issued with a Residence Permit (a stamp in your passport) that allows you to reside in NZ indefinately.
When you get your Residency Visa, you will also get a temporary Returning Resident's Vias or RRV. This will allow you to re-enter New Zealand if you have to leave and want to come back. The temporary RRV lasts for two years from the day you get your Residency Permit (ie, when you actually land in NZ).
If you live in NZ for 184 days of the first year and 184 days of the second year after you first arrive, you can apply for a Permanent Returning Resident's Visa. This will allow you to come and go indefinately.
Once you have lived in NZ for 5 years, you may want to apply for Citizenship. You'll have to pay (of course) and will be issued with a passport that confirms your status as a New Zealand national. One perceived advantage of this is that NZ nationals can live and work in Australia without having to apply for a visa. Another is that you can travel on your original passport or your Kiwi passport, which may reduce the hassle when you try to get in or leave different countries.
I know plenty of people who moved to NZ years ago, but haven't bothered to become citizens. Others do it as soon as they are eligible. I'm sure someone else will think of other advantages and disadvantages, but hope that helps for now.
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