http://wiki.answers.com/Q/What_does_it_mea..._waived_injured
"Waived injured' means the team is releasing the player but the player is injured. The team is responsible to pay the player until his injury has healed. This is usually done by reaching an agreement for a specific amount of money, called an injury settlement. Other teams are allowed to pick up players on the waived injured list but they are forewarned that the player is not in condition to play. Sometimes, if a player on the waived injured list is not selected by another team, the team will retain the player and place him on its injured reserve list."
Not sure if it helps but it basicly says he's cut but injured, the addition of the injured reserve info add's more confusion then being helpfull. I'm surprised to hear Baker broke a rib in the Colts game he didn't look hurt at all.
It certainly raises a question about thursdays game, JP looked like he hurt his thumb again in the Colts game allthough maybe they iced it simply to prevent the swelling he had earlier from returning. Certainly sounds like thursday is going to be Hamdan day.
Edit: KFFL simply lists Baker as released: http://www.kffl.com/player/14914/NFL as reported by our board resident ESPN writer Tim Graham.