To add on to my thread from earlier:
I'm considering using "negative facets" to represent damage and stress, which would be used just as normal facets, just halfway inverse (penalties to you when applicable). Characters could take a certain number (say, 5 total) and whatever was the final "hit" would determine how the character is "taken out".
Damage will probably be in degrees of stress/wound linked to degrees of success. A degree of success will probably be something like every +3 or +4 over target number. Need to sit down with some dice and a friend with a good mind to determine that for sure.