As I have not seen the QME report, I cannot tell you definitively, however, having some portion of pd allows an attorney to get you a much larger settlement. The fact that you have none, suggests that this attorney was unwilling to get involved because there wouldn't be a large enough fee for him. However, he mentions that he wants you to receive an award for a 0% disability. Make sure that you effectively communicate this to the insurance company. There are certain types of damages which you are entitled to if you are injured at work, all of which I mentioned above. Here is a website which goes into each of them in more detail.http://www.josephwaxman.com/about.html#temporary_disability
So, he was not saying get nothing. He was saying get what you are entitled to under the law for a 0% permanent disability. In addition to this, get a stipulation allowing you unlimited medical treatment related to the injury into the future. So, the first part would be in leau of the $2,000 and the second part would be in leau of the $500. So, again, I cannot tell you if this was the right advise, all I can do is help you understand the law as it applies to your situation and make sure there wasn't any miscommunication. That being said, it never hurts to get a second opinion if you want to call two or three other attorneys on the list. Of course, you mention that you have been getting paid this entire time, so, if they are willing to take you back, and if they are willing to keep paying your medical bills, then it may have been good advice. What you have to watch out for, is that the insurance company is trying to get you to settle so as to limit their overall liability. So, if you are still injured in any way, this settlement will prevent you from receiving any temporary disability in the future. Just because the QME doctor says something, doesn't make it true, and you are allowed to get a second opinion. You need to look at 1) are they actually willing to give you your job back, and 2) Are you still in pain in any way before making your decision.
Workers compensation is not meant to give people an amazing payout. It is meant to help people during an injury recover. Look at the website I sent you, see if you are entitled to any of these additional benefits, and possibly call a few more attorneys on Martindale.com if you feel that you are entitled to more than they are offering you.