I am having a few issues trying to understand how volatility work.

A high overall player with a high volatility is at higher risk at being a bust? While a lower rated overall player with a high volatility is also at risk of being a bust, but could also end up being better than his rating suggest?

Is that right or am i off in my thinking?

You are correct.

The reason is that a highly rated player really only has one way to go...down. If a 100 rated player booms, he is still rated 100.

Also, it doesn't necessarily mean a higher rated player has a higher chance of being a bust, just that if his rating does move, it will be down since there isn't anywhere else to go.

Ok, so a high volatility indicates that there is a higher chance of a players attributes to move outside of the indicated "window"?

That's a good way to put it.

Thanks guys. Sorry for all the "noob" questions, i am still trying to get to grips with everything :)

it is ok Lasse

it would be better if people did ask questions they can understand things better here because there probably things out there that are difficult to understand.

This isn't really a noob question. I don't think that Volatility even has an entry yet in the attributes page.