Highlight the crew member you want to decorate then drag the medal over to him. That works for me.
I get rid of Special Ability crewmen unless they are needed in a mod, and then I can promote or recruit other good crewmen. Some of the Special Abilities are pretty crazy imo.
Happy Hunting!
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" Bless those who serve beneath the deep,
Through lonely hours their vigil keep.
May peace their mission ever be,
Protect each one we ask of thee.
Bless those at home who wait and pray,
For their return by night and day."
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