Hi all, the standard definition of "smooth" (without qualification) in most textbooks on manifold theory is indeed that derivatives of all orders exist and are continuous. Examples include bump functions (as in partitions of unity) and frequency components of wave packets. Contrast real analytic solutions, which are far more "rigid"!
But Halls is also right, in the sense that many books/papers refer to "smooth of order such and such", or even "sufficiently smooth", meaning what AiRAVATA said: sufficiently smooth (usually short for "derivatives exist to order n and are continuous to order n-1") to ensure you can use whatever theorem you plan to quote in a proof.