Okay, so after reading the book several times, I think damage resolution works like this:
Player has 10 wounds. A weapon hits them for 15 damage in the arm. They take 5 points of critical damage, but they aren't dead and can still attack (provided they are not stunned or some such). If they are hit again, but in the head for 3 damage, it goes straight to critical damage and results in death.
Is this correct?