A: 

Found out how to solve it: I moved the "update" and "partial" parameters from the ratings partial to the Ratings > Create controller... Here is what it looks like now:

Ratings Controller: I changed the render options

  render :update do |page|
    page.replace_html  'star-ratings-block', :partial => 'ratings/rating', :locals => { :asset => @course }
  end

Partial "ratings/_rating.html.erb":

  <div id="rating_div">
    <%= number_with_precision(asset.avg_rating, :precision => 1) %>/5 Stars<br>
    <ul>
      <li>
        <%= link_to_remote "1", {:url => { :controller => "ratings", :action => :create,  
            :rating => {:rateable_type => asset.class.to_s.downcase, :rateable_id => asset.id, :rating => 1}}},
            :method => :post, :class => 'one-star', :name => '1 star out of 5' %>
      </li>
      ...
    </ul>
  </div>

The partial is included in the main view like that:

<div 'star-ratings-block'>
   <%= render "ratings/rating", :locals => { :asset => yourvariablehere }  %>
</div>

It now works as desired!

alex