I finally found what I needed to make TOC work in a single html file.
Once I propagate this to my kindle books, the Table of Contents button will no longer be grayed out!
The essence:
<!-- TABLE OF CONTENTS -->
<mbp:pagebreak />
<guide>
<reference type="toc" title="Table of Contents" href="#toc"></reference>
</guide>
<a name="toc"/><h2>Contents</h2>
<blockquote><a href="#chap1">1. Beginnings</a></blockquote>
<blockquote><a href="#chap2">2. Zombie Mashup</a></blockquote>
and so on...
<!-- CHAP ONE STARTS HERE -->
<mbp:pagebreak />
<a name="chap1"/><h2>1. Beginnings</h2>
and so on...
Enjoy, live long, and prosper,
Robert