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2. much obliged
An old way of saying thank you; often associated with the Deep South and/or the Bible Belt, or the stinking rich
Jeeves: I've finished tarring the roof of the estate, sir.
Rich guy: Much obliged, Jeeves.
Jeeves: Thank you, sir.
1. much obliged
Much obliged means that whatever was done is appreciated. Literally, it could be extended to mean that the person that says "Much obliged" now owes the other a favor. That the one that is obliged is under an obligation to pay back. Most people wouldn't expect a return favor though.
If a man is given a ride into town, when he gets out of the car, he might say "Much obliged". That would mean: "thank you for the ride. I am appreciative"
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