Hi Mark,
The StarAlignment tool has not been designed to solve these problems, so it is useless in this case. Your best choice is probably the ImageSolver and AlignByCoordinates scripts, although I am not sure if such huge distortions will be manageable by these scripts. DynamicAlignment can align these images without problems with very high accuracy, but requires manual work---less work than what one can think at first glance, but if you have lots of images...
As Mike has pointed out, the best way to align these images is by computing a distortion model first. You can use the ManualImageSolver script to generate it, starting from a DynamicAlignment icon. This script is also fully documented.