There's a patter at the Quilters' Cache website that uses half-square triangles instead of full diamonds. No Y-Seams. :-)
http://www.quilterscache.com/C/CarpentersWheelBlock.html
Either way, except for the center star, this pattern doesn't look like one that paper-piecing would make any easier. You could try printing your cutting lines, seam allowance, and sewing lines on the back of your fabric to make it more likely everything will line up properly when you put the blocks together. You'll use a little more fabric that way, but it does increase the accuracy of a finished product.