Of course there is lots they still don't know about the brain . . . but it seems it is a gateway for transporting information to the cortex:

Thalamic Function: Overview

1. It parcels out and in some way integrates different inputs related to all sensory modalities except olfaction.
2. It plays a key role in the control of motor systems by way of its connections with the basal ganglia and cerebellum, and with its interconnections with motor cortex.
3. Together with the cerebral cortex, it is involved in conscious awareness, and probably language and memory.
4. It has a role in the maintenance of rhythmic sleep-wake cycles through its
intralaminar nuclei.
5. It has an important role in affect associated with emotional tone through its connections with limbic and prefrontal cortex.

http://hubio532.biostr.washington.ed...lamus.indd.pdf

A simpler link:

http://bci.ucsd.edu/107astudyguide/module_08.htm

Of course, even if the nerves are damaged in our spinal cord (which they are not thinking is the case with you at the moment ...), there really isn't any "damage" to where we feel the pain. It's a distortion or "phantom" (sensory perception of) pain/buring/numbness, etc.

Personally, I don't think they've nailed it yet for you, from all I've read.

Cherie