The Annoyed Man wrote:Another question (never having served myself), and I mean this most respectfully..... What constitutes "Military Merit?" Is it usually just recognition for a job well done, or is it for something more "heroic" than that?
This may help answer some of your questions.
http://en.wikipedia.org/wiki/Awards_and ... s_military" onclick="window.open(this.href);return false;
It is an individual award versus a campaign or unit award.  Normally, you must have done something exceptional to receive it.  The above link breaks down the classifications of many awards.  
As a side note, I hear a lot of comments (normally the uninformed press) referring to recipients of military awards as 'winners'.  For example, on NBC just recently I heard a reporter refer to a veteran as the, "Winner of the Purple Heart".  This implies there was a contest and someone came out the champ.  Unlike awards the press is accustomed to, each individual award stands on its on merit; individual awards are earned.  However, the nomination of awards varies from unit to unit--units with a strong 
esprit-de-corps typically reconginze their soliders actions more than other "laid-back" units.  In the Army, 
any individual that is witness to an act that deserves recognition may initiate the nomination.  It may be the same in the other services as I once completed a nomination for an Airman that was assigned to my staff.  It does not have to be a specific person within the Chain-of-Command.