1. (adj.) generally very good at life, but not in an annoying way. other words used to describe one who is dudgy may include sick, chill, awesome, fly, and, in certain less enlightened circles, pimp. the word can also imply grubbiness, or, to an extent, ghetto-ness, while avoiding crossing over into the more negatively connotated hood status.
2. (adj.) carrying street cred; of or like a soldier.
1. george: should we ask the new kid if he wants to play ball with us later?
fred: yeah, that dude's dudgy, i would enjoy spending time with him.
2. lindsay: david asked me out, should i go on a date with him?
kelley: oooh, yeah, aw he's really dudgy, you two would make a good couple.
12 step recovery jargon referring to someone new who talks about how great life is, now that they'resober. Usually meaning that the person is out of touch with reality.
The new guy seems pretty happy for a dude who has no job, no money and no family. He must be on a pink cloud.