Shawn is camping, thus I am posting the code on his behalf. I have verified the code on my computer, though, couldn't help but to look how he accomplished his feat.
Code:

Function A($)

 while $
  $a = $ mod 10 * ($ mod 10) + $a  
  $ = $ / 10
 loop

 if $a > 4
  $a = a($a) = 1
 ;endif

EndFunction

And the score is as follows:
Code:

KiXtart
KiXtart Version  = 4.51 Beta 1
KiXGolf Script   = kixgolf_happy_numbers.KIX

Computer
OS               = Windows XP Professional
CPU              = Intel(R) Xeon(TM) CPU 3.06GHz
Speed            = 3056 MHz
Memory           = 2046 MB

KiXGolf Scoring Engine
Scoring Engine   = 3.0.3

KiXtart Golf Score
Tournament       = KiXtart Golf: Happy Numbers
Processing Start = 2005/08/31 18:12:38.577
Processing End   = 2005/08/31 18:12:38.608
Duration         = 0000/00/00 00:00:00.030
# Tests Run      = 57
# Tests Passed   = 57
# Tests Failed   = 0
Result           = passed
KiXGolf Score    = 76
 
Thank you for participating in KiXtart Golf!
_________________________
There are two types of vessels, submarines and targets.