That's right. In religious context, the word means 'sacred'. It is also used as an meaningless intensifier, especially by older people in the UK. As you say, it indicates mild annoyance. For example, you might hear someone mutter, in an irritated fashion, 'Now, where did I put my blessed keys?'. One point to note about pronunciation - this word is pronounced as two separate syllables /blesid/. This is one of a limited set of words where the past participle form and the adjectival form are written the same but pronounced differently. The priest blessed the congregation ---> /blest/ 'I'm so stupid. I make that same mistake every blessed time!' ---> /blesid/ How should you use it? Probably not at all. Unless you're talking about God, you have not reason to use it in the first sense. And seeing you are not an old-fashioned elderly British person, it would be very odd for you to use it in the second. I hope that helps.

In many parts of America, it's not unusual to say to a friend "have a blessed (two syllables) day," meaning that you wish for God to grant him a good day. You may also say that you feel blessed (one syllable), to indicate you are happy with your the way things are going for you.

I'll just add to Suki - I'm not young - so I still use BLESS - ED in the 2 syllable form as a sort of swear word. "That child is a blessed nuisance!" It's not as strong as that child being a 'bloody' nuisance. Sometimes you'll read it in novels where it's not used as a swear word. "The blessed child was kind and sweet" - this child is the exact opposite of a blessed nuisance! Don't forget, all these are the 2 syllable bless-ed form. Finally, the one syllable form. The priest blessed the child. You will not need the word much, but you'll come across both forms in your studies. And there will be AGED and DOGGED and WICKED etc. All of which have one and two syllable forms. (wicked as verb you'll hardly ever need! ) Happy studying!

I have never heard the second meaning you listed used for blessed. Here is a link: http://www.merriam-webster.com/dictionary/blessed