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Right Understanding, sometime called Correct Understanding, in Buddhism is the first step of the Eight Fold Path. If a follower does not have a Right Understanding, they will have problems with trying to attain the other facets of the path. Right Understanding is know the true nature of existence. What that means is that you see things as they really are, without preconceptions and judgements applied to them. So for example, news is neither good or bad. Its just news. A short story may help:

A Buddhist farmer has a son who finds a wild horse and brings it home. The Farmers neighbor stops by and says "it was real lucky your son found that horse". The Buddhist Farmer says: "It might be". While trying to break in the horse the Farmers son falls off and beaks his leg. The neighbor stops by and says "it was unlucky your son broke his leg trying to train the horse". The Buddhist Farmer says: "It might be". A week later an army comes by forceably conscripting all young men. Becuase the Farmers sons had a broke leg he could not go. The neighbor stops by and says "it was real lucky your son was taken by the Army". The Buddhist Farmer says: "It might be"

So things are as they are. We make them into good and bad by adding our preconceived notions of How They Should Be. This leads to unhappiness and strife. Now accepting things are as the are doesn't mean you don't work to improve things. But you need to take out the anger, frustration and ill feelings that make the task: You against Me, Them against Us, etc. We are all in the world together and together we make it better for all.

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Q: What is correct understanding in Buddhism?
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