What is Karma?

I believe that my wife's cultural lens and mine see "Karma" in extremely different lights, which makes me question: What do people think "Karma" means?

karma: Definition and Much More from Answers.com (excerpt):

1. The explanation of karma can differ per tradition. Usually it is believed to be a sum of all that an individual has done, is currently doing and will do. The results or "fruits" of actions are called karma-phala. Karma is not about retribution, vengeance, punishment or reward; karma simply deals with what is. The effects of all deeds actively create past, present and future experiences, thus making one responsible for one's own life, and the pain and joy it brings to others. In religions that incorporate reincarnation, karma extends through one's present life and all past and future lives as well. It is cumulative.
2. karma is referred to as karmic dirt, as it consists of very subtle and microscopic particles i.e. pudgala that pervade the entire universe. Karmas are attracted to the karmic field of a soul on account of vibrations created by activities of mind, speech and body as well as on account of various mental dispositions. Hence the karmas are the subtle matter surrounding the consciousness of a soul. When these two components i.e. consciousness and karma interact, we experience the life as we know it at present.
3. The idea of karma was popularized in the Western world through the work of the Theosophical Society. Kardecist and Western New Age reinterpretations of karma frequently cast it as a sort of luck associated with virtue: if one does good or spiritually valuable acts, one deserves and can expect good luck; conversely, if one does harmful things, one can expect bad luck or unfortunate happenings. In this conception, karma is affiliated with the Neopagan law of return or Threefold Law, the idea that the beneficial or harmful effects one has on the world will return to oneself. Colloquially this may be summed up as 'what goes around comes around.'

Which is your take? Or do you have all together different one?

Please think about your answer before reading mine...

I think I'm very much in the #3 camp. I think Karma has entered the Western group conciousness as a quick explanation of "what goes around comes around" without placing any emphasis on the force behind that concept: IE: God, Nature, Majik, etc. And that the entire concept of reincarnation is absent in the Western (though possibly just American) basic understanding.

Discuss.