What does 'true concurrency' mean?
The term "true concurrency" arises in the theoretical study of concurrent and parallel computation. It is in contrast to interleaving concurrency. True concurrency is concurrency that cannot be reduced to interleaving. Concurrency is interleaved if at each step in the computation, only one atomic computing action (e.g. an exchange of messages between sender and receiver) can take place. Concurrency is true if more than one such atomic action take place in a step.

The simplest way of distinguishing both is to look at the rule for parallel composition. In an interleaving based setting, it would look something like this: 

$$\frac{P \rightarrow P'}{P|Q \rightarrow P'|Q}$$

This rule enforces that only one process in a parallel composition can execute an atomic action. For true concurrency, a rule like the following would be more appropriate.

$$\frac{P \rightarrow P'\quad Q \rightarrow Q'}{P|Q \rightarrow P'|Q'}$$

This rule allows both participants in a parallel composition to execute atomic actions.

Why would one be interested in interleaved concurrency, when concurrency theory is really the study of systems that execute computation steps in parallel? The answer is, and that's a great insight, that for simple forms of message passing concurrency, true concurrency and interleaving based concurrency are not contextually distinguishable. In other words, interleaved concurrency behaves like true concurrency as far as observers can see. Interleaving is a good decomposition of true concurrency. Since interleaving is easier to handle in proofs, people often only study the simpler interleaving based concurrency (e.g. CCS and $\pi$-calculi). However, this simplicity disappears for concurrent computation with richer forms of observation (e.g. timed computation): the difference between true concurrency and interleaved concurrency becomes observable. 

Standard equivalences like bisimulations and traces have the same definitions for true and interleaving based concurrency. But they may or may not equate different processes, depending on the underlying calculus.

Let me give an informal explanation of why interleaving and truly concurrent interaction are indistinguishable in simple process calculi. The setting is
a CCS or $\pi$-like calculus. Say we have a program

$$
   P \quad=\quad \overline{x} \ |\  \overline{y} \ |\  x.y.\overline{a} \ |\  y.\overline{b}
$$
Then we have the following truly concurrent reduction:
\begin{eqnarray*}
  P &amp;\rightarrow&amp; y.\overline{a} \ |\  \overline{b}
\end{eqnarray*}
This reduction step can be matched by the following interleaved steps:
\begin{eqnarray*}
  P &amp;\rightarrow &amp; \overline{x} \ |\  x.y.\overline{a} \ |\  \overline{b} \\
    &amp;\rightarrow &amp; y.\overline{a} \ |\  \overline{b}
\end{eqnarray*}
The only difference between both is that the former takes one step, while the
latter two. But simple calculi cannot detect the number of steps used to reach
a process.

At the same time, $P$ has the following second interleaved reduction sequence:
\begin{eqnarray*}
  P &amp;\rightarrow &amp; \overline{y} \ |\  y.\overline{a} \ |\  y.\overline{b} \\
    &amp;\rightarrow &amp; \overline{a} \ |\  y.\overline{b}
\end{eqnarray*}
But this is also a reduction sequence in a truly concurrent setting, as long
as true concurrency is not forced (i.e. interleaved executions are allowed even
when there is potential for more than one interaction at a time).