Hey Gruffty,
T20 levels show a character's abilities in a "Class" of persuits. Most of the T20 classes map nicely to the CT careers (A navy class, a scouts class, etc.)
Levels are gained through experience points. When you get enough XP, you automatically improve to the next level. It's possible to "Multiclass" by putting the levels into different classes, thereby diversifying your skills and abilities. For example, A level 4 scout gains a level. He could take his next level in scout (Becoming a Scout 5) or he could put his next level in rogue, becoming Scout 4/Rogue 1.
Experience points can be gained in play (awarded by the Referee for completing adventures, training, etc) and are awarded in character generation through the prior history system. Prior history with terms, services, duty assignments is rolled similar to CT (with complexity somewhere inbetween the basic and detailed (merc, HG) systems). Instead of awarding skill points directly as in CT, the rolls in T20 prior history award XP. At the end of each term, XP are totaled up and the character gains any levels he is entitled to by his new XP total. Then he can do a new term or stop and put his character in play. Age, military rank, etc are based on terms served, not level.
There's a PDF document in the eLibrary section called "T20 Lite" which goes over much of this stuff, I think. You might give it a look.