Boom! This allows `{{linkTo}}` transitions and direct URL loads. Needed to utilize `Ember.Route`'s `model` function (for direct URL) and `setupController` (for `{{linkTo}}` transitions).

gistfile1.js

App.Router.map(function() {
    this.resource('happs', function() {
        this.route('new');
        this.resource('happ', { path: ':happ_name'}, function() { 
            this.route('edit');
        });
    });
});

App.HappsRoute = Ember.Route.extend({
    model: function() {
        return App.Happ.findAll();
    },
    setupController: function(controller, model) {
        return App.Happ.findAll();
    }
});

App.HappRoute = Ember.Route.extend({
    model: function(param) {
        var name = param.happ_name.replace(/-/g, ' ');
//        console.log('model:param', name, Ember.typeOf(name));
        return App.Happ.find(name);
    },
    setupController: function(controller, model) {
        var name = this.modelFor("happ");
        if (Ember.typeOf(name) == 'instance') {
            name = name.get('name');
        }
        name = name.replace(/-/g, ' ');
        this.controllerFor('happ').set('model', App.Happ.find(name));
//        console.log('setupController:name', name, Ember.typeOf(name));
//        return App.Happ.find(name);
    }
/*    deserialize: function(model) {
        var name = model.happ_name.replace(/-/g, ' ');
        console.log('deserialize', { happ_name: name });
        return { happ_name: name };
    },
    serialize: function(model, params) {
        console.log('serialize', model, params);
//        return {}
    }*/
});