1) I don't really have any faves anymore. I'd say Aristotle and Kant influenced me the most. If I had to say who I had the most fun reading, it'd be Nietzsche and Wittgenstein.
Recently read: Paul Ricoeur, Harry Frankfurt and Ernst Bloch.
2) Which is better to have... truth or happiness?
Speaking just for myself, I'd like to enjoy my life a little bit before I die. The truth will take care of itself.
3) How do our thoughts translate to physical action? Do you believe in mind/body duality, or some other mechanism?
I think the philosophy of mind jargon is inferior to whatever passes for common sense . Excessive materialism is as much a turn off for me as excessive abstractness.
Have you read any Gilbert Ryle, LnGrrrR?