i just came from a two week kick ass manoeuvre where we had a huge combat
simulation with the AGDUS system which is a great combat simulator from
SAAB. pads are attached to torso, head, arms, legs (latter three are
optional) and there is an AGDUS add for almost all weapons and vehicles
including tanks, panzerfaust, milan, etc. hits are assessed rather
realistically and you can be light or heavyly injured (or dead).

this site explains part of the simulator pretty well:

http://www.ets-news.com/Saab.htm>

do you know other / more advanced simulators?

Its called TESEX in the UK, not sure who manufacture it, but it sounds exactly the same as the system you explain of. We use it on vehicles as well, it also neutralises the targeting system in your rifle.