FATEwiki - Wounds Table

MoS	Result	Ladder	Description	Effect
0	Scratched		A negligible result. A near miss, or a hit with no real impact.	None.
+1	Clipped	[ ][ ]	A noticeable result. A hit or maneuver that provides a momentary advantage to the attacker, such as knocking the opponent back, off-balance, weapon out of line, etc.	Loser is -1 penalty to their next action. (Pretty much anything done can be considered an action; a roll is only made if opposed or against a test of some sort.) Box resets after that action. Penalty only taken once, even if Clipped multiple times in a round.
+2 - +4	Hurt	[ ][ ]	A palpable result. A hit or manueuver that grants a persistent advantage, such as a shallow cut or a disarm. These things can be resolved/patched up after the battle is over.	Loser is -1 to all actions for the rest of the scene/battle.
+5 - +6	Injured	[ ][ ]	A significant result. The impact carries on beyond the current scene, a serious injury being the obvious example.	Loser is -1 penalty per box to most actions until healed.
+7	Taken Out	X	A decisive result. The fight is over from a knock-out, passing out, etc. Not automatically death (that's for after the battle).	Loser is out of the battle/scene.

When a character suffers a result, check off the box next to it. When there's nothing left on that line, mark off the next worst box on The Ladder (this is sometimes known as the Death Spiral). There is no distinction, in the context of a combat, between Lethal and Non-Lethal damage.

Clipped causes a -1 on the next action. Pretty much anything done in a combat situation can be considered an action ("I hug the wall, hoping to avoid being shot at while my eyes clear from the flash-bang!"), which only requires a die roll if some sort of test or challenge is made. It makes no sense for the -1 to carry on to an action take several exchanges later, even if the person hasn't been "doing anything" during that time.

Now, if Joe-Bob hugs the wall, and Dylan immediately runs forward and tries to pop him one, Joe-Bob is going to be at the -1 for that combat action (balanced by Defensive Fighting -- which is, after all, the point of fighting defensively), but otherwise, if no die-rollable action takes place, the -1 would burn off without having any effect (aside from getting Joe-Bob to not do anything for a round/exchange).

Note that you can use something similar to this wound track for non-combat situations: a debate, a seduction attempt, etc.

Note that Hurt and Injured damage stacks. Any Hurt boxes cause a -1 for the rest of the combat. Each Injured box causes an additional -1 until healed. So (for the duration of the combat):

1 Hurt = -1
2 Hurt = -1
1 Hurt, 1 Injured = -2
2 Hurt, 1 Injured = -2
1 Injured = -1
2 Injured = -2
1 Hurt, 2 Injured = -3
2 Hurt, 2 Injured = -3

For the "next round," the Clipped results stack similarly.