Excellent question, Matthew!
With Lucy, I think clarification is in order. I'd like to work only on two small points: karma, free will. (This is a bit tedious in order to be rigorous, sorry.)
First, we tend to think of karma as some kind of exotic metaphysical force field. In fact, karma is simply cause and effect. People who are careless driving nails can hit their fingers. Tha's the karma of carelessness while driving nails. If you fail to put fuel in your car it will stop running. That's the karma of not gassing the car.
Karma. The nature of karma is easily understood when we look at the attitude of the actor. In this sense, attitude is the posture in life that inclines us toward certain kinds of responses, just a a physical posture tends to incline us toward correlative physical choices. As we learn to be less rejecting, we tend toward a context in which love is more accessible. As we learn to be truthful and logical, we tend toward a context in which things are more clear and understandable, as well as easier to handle. As we learn to find happiness by doing useful things in a useful manner we tend toward a context in which we feel joyful more and more of the time. These are states of our attitude. Karma, by bringing natural consequences, helps us learn to avoid errors, so that as we find ways of dealing with things and the amount of hassle is reduced, we are conditioned toward improvement. This is basic BF Skinner and Ivan Pavlow stuff.
Free will. Everything we know in our everyday lives has got to be input from outside, whether through unknown spiritual mechanisms, or social learning theory. The idea that we always have totally free will simply doesn't work. As a hypnotherapist, I often program people - so much for free will. We also bring some stuff with us, which seems to have been acquired in the past by similar means, and recalled. So let's just postulate, for a moment, that we are totally programmed, a product of 100% conditioning. I worked with the math on this for my Soc PhD - the correlation between 100% learning theory and observed data increase is on the order of r=+0.95 - for social science that's scary! - at an alpha of p<0.001. So it's good science. That mans that we DO NOT get free will on the level of social learning theory etc. At very best, our will is only partly free, and partly conditioned by context.
Now, let me take you back to the Very Beginning, prior to the MegaPiffle that started everything. What was there? In the totality of utter emptiness we have only the "Uncaused Creative Tendency". From this we have an emanation of the universe. The "stuff" of the universe must be emanated too, so it emerges prefabricated. I suggest that the nature of the soul is not only "in the image of God" but actually "of the substance of God" in the sense of being a projected creative tendency, which is what life seems to be. In other words, we, and what we do, manifest God. (This assumes that God is infinitely near - theories that propose God as infinetely distant and alien would be different.)
When the world goes through some kind of changes, this is a real, emergent, creative act. It did not occur before. It involves, at least by inference, relationships with everything else. Thus, each event manifests God's creativity. Then God responds, in most cases indirectly through manifestations like you and me. Thus, when we make a choice or decision, we do so as God's projected agent within the world of God's projected structures. This means that we are making choices at the forefront of the surging wave of life as it expands into the conditions of its setting. Because we are acting in a totally novel manner we are not responding to conditioning, but rather we are projecting God's will, and as such, we are being truly creative. To be truly creative is just like it feels - we sort information, figure out the best course of action, and then do something that is 100% new, not programmed. The knowledge waas programmed, but the new situation places the programming in an open ended context where it is only half the picture, and our attitude toward selection of options provides the other half.
Where this goes, if you follow it through, is toward a perpetuall greater acord with the overall nature of the cosmos, and especially a greater accord with the nature of God. Then, carried into the indefinite future, the tendency is to perpetually come into ever greater oneness with God. This is a steadily increasing process, as everything evolves, including God-and-the-world system. In this manner, we not only have immediate joy from becoming closer to God, we have an eternity in which we perpetually increase in that joy as we follow an asymptote toward oneness wth God. (This corresponds roughly to Hinayana.)
Personally, I see this as leading to a jump in which we recognize our identity with God, and (often abruptly) realize this in nirvastarka samadhi. (This is a well documented state - read the Upanishads, Patanjali's Yoga Sutras, or Hatha Yoga Pradipika to get a classical taste of it. This corresponds to Mahayana.) That is a merger into the God-stuff, after which we become co-creators with God (I like Cayce's term) and as part of God we have totally free will because everything is creative and new all the time. Programming has now been translated into learning, which is just what it feels like when we make a decision.
PUL
dave
PS- The MBS part of the name is a hint to those who want to locate me on-line, Doc. I operate the Mind-Body-Spirit Hypnoclinic in Los Osos. Ths is my one concession to advertising.