I know the paperwork hell of which you speak, but in my case it wasn't discharge, but a transfer. I made the mistake of thinking changing not just units, but an entire corps was somehow a good idea and that doing it over Christmas was the perfect time to do it.
Months later and ALL but my pay records (the only thing proving I'd been in the army for years already) had disappeared, and I find myself back on Day 1, Pre-week, recruit training. I got SCREWED. I saw an opportunity to end the fuckery and got out soon after. It's quite possible I'm the only reverse engineered civilian around.
Worst part is I actually enjoyed the army and had been on track for a commission.