True happiness is simply being satisfied with where you're at and what you have in life...specifically the basic areas- Relationship status and being happy within that relationship, financial/job status, social network outside of spouse/girlfriend with family and friends, and last but not least the little things or activities/hobbies that make you happy. Creating your own desired balance of all these things is true happiness.
Seeing my kid smile, my dogs snoring in a cozy warm bed. I guess being content with life, (for me) is true happiness.
Everyone's version of happiness is different. It would be odd for us to be happy all the time. The bad put the good in perspective. I agree contentment would be the closest thing to true happiness. In that case, I think it would be accepting exactly where you are and what you have in life.
I don't really know. I am reading a book all about defining happiness (Stumbling on Happiness, by Daniel Gilbert), and now I am even less sure what true happiness is. But, I am sure cats are involved, and good tea(Barry's Gold, with milk and sugar), and either lasagna or chili rellenos, or both. And books.