The Collaborative International Dictionary of English v.0.48:

bully \bul"ly\ (b[.u]l"l[y^]), interj.
   Well done! Excellent!
   [PJC]

The Collaborative International Dictionary of English v.0.48:

Bully \Bul"ly\ (b[.u]l"l[y^]), n., Bully beef \Bul"ly beef`\
   (b[.u]l"l[y^] b[=e]f`). [F. bouilli boiled meat, fr. bouillir
   to boil. See Boil, v. The word bouilli was formerly
   commonly used on the labels of canned beef.]
   Pickled or canned beef.
   [Webster 1913 Suppl.]

The Collaborative International Dictionary of English v.0.48:

Bully \Bul"ly\ (b[.u]l"l[y^]), a.
   1. Jovial and blustering; dashing. [Slang] "Bless thee, bully
      doctor." --Shak.
      [1913 Webster]

   2. Fine; excellent; as, a bully horse. [Slang, U.S.]
      [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

Bully \Bul"ly\, v. t. [imp. & p. p. Bullied (b[.u]l"l[=e]d);
   p. pr. & vb. n. Bullying.]
   To intimidate or badger with threats and by an overbearing,
   swaggering demeanor; to act the part of a bully[1] toward.
   [1913 Webster]

         For the last fortnight there have been prodigious
         shoals of volunteers gone over to bully the French,
         upon hearing the peace was just signing. --Tatler.
   [1913 Webster]

   Syn: To bluster; swagger; hector; domineer.
        [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

Bully \Bul"ly\ (b[.u]l"l[y^]), n.; pl. Bullies
   (b[u^]l"l[i^]z). [Cf. LG. bullerjaan, bullerb[aum]k,
   bullerbrook, a blusterer, D. bulderaar a bluster, bulderen to
   bluster; prob. of imitative origin; or cf. MHG. buole lover,
   G. buhle.]
   1. A noisy, blustering fellow, more insolent than courageous,
      who threatens, intimidates, or badgers people who are
      smaller or weaker than he is; an insolent, tyrannical
      fellow.
      [1913 Webster]

            Bullies seldom execute the threats they deal in.
                                                  --Palmerston.
      [1913 Webster]

   2. A brisk, dashing fellow. [Slang Obs.] --Shak.
      [1913 Webster] Bully

The Collaborative International Dictionary of English v.0.48:

Bully \Bul"ly\, v. i.
   To act as a bully[1].
   [1913 Webster]

WordNet (r) 3.0 (2006):

bully
    adj 1: very good; "he did a bully job"; "a neat sports car";
           "had a great time at the party"; "you look simply
           smashing" [syn: bang-up, bully, corking,
           cracking, dandy, great, groovy, keen, neat,
           nifty, not bad(p), peachy, slap-up, swell,
           smashing]
    n 1: a cruel and brutal fellow [syn: bully, tough,
         hooligan, ruffian, roughneck, rowdy, yob, yobo,
         yobbo]
    2: a hired thug
    v 1: be bossy towards; "Her big brother always bullied her when
         she was young" [syn: strong-arm, bully, browbeat,
         bullyrag, ballyrag, boss around, hector, push
         around]
    2: discourage or frighten with threats or a domineering manner;
       intimidate [syn: browbeat, bully, swagger]