While I like most of the changes in Fudgy SOY, I kind of liked the old way of doing Harm.  This is my port of the Old SOY Harm thingy into the New Style.  It appears to work pretty good.

Harm works like this: your character's general state is described by one of three conditions: Healthy, Bloody, and Broken.  Healthy means you're in the pink.  Bloody means, you're physically hurt, badly shaken, or pretty embarassed.  Broken means, you're mortally wounded, utterly disgraced, or maybe even borderline suicidal.  You start out Healthy, and as you begin to take harm you gradually become Bloody and then, in the worst case, Broken.

Harm is tracked with a little counter which starts out at zero.  Every time someone inflicts harm on you, increase the counter by the Success Level.  Then, make an Endure, React, or Willpower check, hoping to meet or beat that amount of harm.  If you fail, two things happen: your condition worsens (Healthy to Bloody, Bloody to Broken), and the counter resets to zero.  If you succeed, you remain in your current condition--but the counter stays where it is, and further harm will add on to it.

EXAMPLE: Garrett has Endure at Journeyman (2), and React at Apprentice (1).  He's struck by an enemy's sword, which does 3 points of harm.  His harm counter started at 0, and now is at 3.  He makes an Endure skill check, and rolls a 1.  Doing the math, 1 + 2 = 3, so he remains Healthy.  Then he's insulted by an ex-girlfriend for 1 point of harm, taking his total to 4.  He rolls React (because this is a social problem), and gets a 0.  Since 0 + 1 < 5, he becomes Bloodied, and his harm counter now resets to 0.

When you are Bloodied, every skill except your Innate Abilities takes a penalty die.  Once you've been Bloodied, you can change your goal in Bringing Down the Pain at any time, without "wasting" a turn with purely defensive actions.

When you are Broken, even your Innate Abilities take a penalty die, and in order to take any action at all you must spend a point from the appropriate pool.  Just like being Bloodied, you can change your goal at any time.  Once you are Broken, any additional harm takes you out of the conflict: your opponent will achieve his or her goal.

What about healing?  Healing doesn't happen automatically: either someone else has to use a healing skill (First Aid, or Counsel) on you, or you have to spend a day resting, or you have to spend 5 points from any combination of pools.  Once you meet any of those three conditions, make a healing check.

The check is, make a check using an appropriate Innate Ability.  If you succeed, your condition improves (Broken to Bloody, Bloody to Healthy) and the Harm counter is reduced by your success level.  Using First Aid or Counsel gives you bonus dice to the actual healing check.