Assuming the wound is bad enough to not allow you to continue in the military, What happens to you?

Do they say "so sorry, your out not have a nice life, thanks alot."
Or is there some kind of payoff? {remaining active duty pay, like a contract]  
Are you just drummed out and forgotten?
Continual disability pay?
Anybody here ever been in this situation?

If there is significant loss of limb/function which interferes with duty, the SM is retired based on % disability.  If the SM can still perform duties w/o a physical profile, they are usually retained.  Bear in mind, the same requirements for admission into the Armed Forces apply to the injured SM.  Total loss of hearing in only one ear is retirement.  Same with vision and arms/legs.

Retirement of SM's is not a bad thing.  Lifetime medical care.  Great education benefits.  A % of your base pay, tax free.
A friend of mine was retired after a UH60 crash.  His retirement plus what he makes now is quite a lump but he lost some major skin/fingertips in the fire.  

I dont know how it is for people who have been shot, but at least as far as for a Parachute accident:

I was given a certain time to heal, when I was not 100% by the alloted time a Medical Retention board was held.  The board decided that retraining in another job in the military was not going to fix the problem so I was given a disability rateing for the specific problems associated with the para accident, and a disability severence pay.

The severnce pay was figured by the ammount of time I had on AD, my base pay and a mulitplyer.  

I then went to VA and they looked at the Med Boards findings, plus my medical records and determined my final disability rateing.

I receive a tax free payment each and evey month that is tied to my disability rateing.  I also receive free medical care from VA for the rest of my life.  A combat wounded vet is not set for life in most cases, but they are taken care of.  

Well said...
COmbat wounded are only given care for service conected disabilities;however, if you have no other health insurance you are covered all the way....This also depends the extent of the wound and medical review...

FYI: If your disability is 30% or more get a DAV or Purple heart representatrive to fill out the paperwork for a VA chapter 31..." A free 4 year college education..all inclusive, books. fees. pens, computers, you name it " think of all the welfare hoes eatin our tax dollars.....so go use yours for your own good...