I believe, Rohan, that the Starmaker was a newly designed engine in late 1965. It had some obvious relationships to the older Villiers designs, particularly the 197cc "9E" - I think some of the castings might have been very similar. Until the N-V conglomerate was formed, Villiers sold many thousands of engines and transmissions to the UK manufacturers of "beginner" bikes, like James, Francis Barnett, DOT and also quite a lot of higher performance engines to Greeves. They also sold the 2T, a 250cc two-stroke twin, to quite a lot of their customers.
I agree with your comment about James and F-B being "badge engineered" and they used a lot of Villiers engines and transmissions, but I'm sure the Starmaker wasn't one of them. The 250 most other manufacturers bought from Viiliers was the 2T. The Stormer frame is very much based on the Commando, and was a Wolverhampton design by Bob Trigg's engineering people. The only real difference is that the top tube joins the headstock towards the bottom instead of the top and of course, no Isolastics. Some time ago, there was a photo on this forum of the fatigue crack in the unmodified Commando frame. One of the works M-X bikes had an almost identical failure, on the top side of the top tube - since the gusset was the opposite way round.
Also, immediately prior to the formation of N-V, I understand that Villiers was considering getting into bike manufature. They were doing quite well selling engines and transmissions, also building cylinder heads for the high performance version of the Ford Cortina (the Lotus dohc version) under contract to Lotus and Ford. Unfortuinately, neither they nor the rest of the small bike makers saw the Hondas coming - twice the power, electric start, four-strokes and much more sophisticated machines than what Villiers' customers were making.
If the N-V consolidation hadn't happened, there may have been bikes out there with "Villiers" on the tank and they'd have gone to the wall much sooner than N-V eventually did.
Until the formation of N-V by Manganese Bronze Holdings, I don't think Villiers had any interest in, or connection with the James and F-B bikes, other than being the supplier of their engines and transmissions. Since I only worked there for a very hectic 16 months, I might have mis-interpreted some of the things I heard.