The plan then would be to launch the next bird as a rescue and allow the wounded bird to burn up after setting a safe trajectory for re-entry.
I don't think the crew is in danger now, but the bird may not be coming back.
From foxnews.com: "The object, which is circling the Earth in the same orbit as the shuttle and is of undetermined size, probably came out of the shuttle's cargo bay because some jets had just been fired, shaking the orbiter, NASA spokesman Doug Peterson said."
Could be bad info...