It's all very simple for RE-ing space parts -- completely different from the other sorts of RE-ing that can now be done. First, you need to craft a Component Analysis Tool, which your Shipwright tool will probably open up on as a default. Next, you put into that tool the appropriate number of looted space items. You put exactly one item in for a RE-level 1 item, exactly two in for an RE-level 2 item, and so on up to exactly ten for RE-level 10 items. I say RE-level because some looted items have different RE levels than their "Tier" ... for example, a Tier 6 reactor may have a RE level of 8. You find the RE level at the bottom of the stats. If none is listed, then you've got your hands on either a looted item that has already been RE'd (you can only RE an item once) or you have a crafted item (crafted items cannot be RE'd at all).
There are two advantages to RE-ing items. (1) the RE'd item gets the best of the stats of all the items used (simple example: a tier-2 reactor has a high energy generation, a second has a lower mass: RE-in these items together gives you the high generation rate and the low mass; and (2) you get a bonus, depending on the level (1-5%, depending on what tier the RE'd item is) that improves all of the stats.
There is a third possible bonus -- you could get a disk (one of a series of eight different disks) that when you have all eight will give you a limited-use deed to build a KSE Firespray -- the ship that Boba Fett flew.
There are all sorts of resources on the Pilot's forums for reverse-engineering space items, you may want to check out the links in the the Pilot's Academy (http://forums.station.sony.com/swg/post ... _id=247835
) in the Components section or check out the link to Spaceloot.org. Some people get pretty fanatical about Space RE-ing so there's a lot of information, most of it good, out there on it.
One other key piece of information to know is that not all RE'd parts are better than crafted parts. In my experience, in the middle tiers RE'd boosters and reactors are generally better than what you can craft, but otherwise I've found crafted parts to be superior. There are exceptions -- for example, the best Tier 8 cannon you can get is a carefully RE'd Borstel (neutral pilot reward) or Incom Tri-Cannon (rebel pilot reward, identical stats to the Borstel). Or the other way around -- I generally can't beat the booster energy of an RE'd booster, but as an Ithorian SW (Ithies and Sullistans get racial bonuses to weapon, engine and booster crafting) with my racial, expertise and outfit bonuses giving me 18 points to experiment with, I can get a booster that crushes RE'd boosters for acceleration, speed, and consumption rate all in one item.
So, to end this ""simple" little tidbit on Space RE-ing, if you're just starting off and don't have the high-end resources to make premium stuff yet, selling RE'd loot (or using it) can be a means to build your funds (selling at a disount when you can't beat the crafted gear) until you do have the resources. If you really get into it, you'll horde the best you can find for individual stats till you can make the best possible item out there -- I know one guy who's been collecting for two years now before he'll RE his Borstel. For others (like me, only a little fanatical and more of a fan) it can be an interesting hobby. Again, I'd go look at the links in the Pilot's Academy and read up on the threads posted there.