I like the sound of this "Damage Track". There's a similar mechanic used in Star Wars Saga Edition and my players and I enjoy using it quite a bit. I like the idea of various effects and conditions affecting the players more than just HP/Attribute damage. It always killed my sense of belief when a player is alive and swinging at full strength, with just 2 HP left... As a DM, I can add all kinds of flavor and descriptors to various things that take them down the condition track. I'm going to look more into True20 next chance I get!
Make sure you look into/buy the Revised Edition. The original comes with some fairly good genre-specific adventures, but the Revised comes with the previously published True20 Companion in the back of the book.
If your intention is to run a Ravenloft game, you'll particularly like pages 209 - 236 which deal with Horror gaming. It introduces horror-specific backgrounds, paths, advice, skills & feats, equipment, and more. Most interesting is that they introduce a mental health track in addition to the health track. As with the health track, it's relatively simple to use - everything from being startled to being driven insane...
It really seems as though the Horror section was written with Ravenloft in mind specifically. While it lacks the Dark Lords and some of the flavor you'll find only in the true Ravenloft books, it has rules to make converting from the 3/3.5e Ravenloft books a snap. The Revised book even has a few monsters in it to use to compare to the D20 Ravenloft critters to make conversions more logical.
I'm very much looking forward to Pathfinder, and will likely use that for my Fantasy game. As for Ravenloft, I have to agree with the original poster, True20 is a solid way to go...(Though I'm also tempted to run the old 2e stuff with a slightly house-ruled Castles & Crusades)