Transaction script - how to redeem a basic TX?

Originally posted on StackExchange - http://bitcoin.stackexchange.com/questions/3374/how-to-redeem-a-basic-tx

Given a raw, standard Tx:

Code:

01000000

01
26c07ece0bce7cda0ccd14d99e205f118cde27e83dd75da7b141fe487b5528fb00000000
8b
48304502202b7e37831273d74c8b5b1956c23e79acd660635a8d1063d413c50b218eb6bc8a022100a10a3a7b5aaa0f07827207daf81f718f51eeac96695cf1ef9f2020f21a0de02f01410452684bce6797a0a50d028e9632be0c2a7e5031b710972c2a3285520fb29fcd4ecfb5fc2bf86a1e7578e4f8a305eeb341d1c6fc0173e5837e2d3c7b178aade078
ffffffff

02

b06c191e01000000
19
76a9143564a74f9ddb4372301c49154605573d7d1a88fe88ac

00e1f50500000000
19
76a914010966776006953d5567439e5e39f86a0d273bee88ac
00000000

and a private key:

Code:

18E14A7B6A307F426A94F8114701E7C8E774E7F9A47E2C2035DB29A206321725

How does one construct a new transaction to redeem the coin from the second output? I've been trying to figure this out for a long while using etotheipi's diagram, but can't seem to grasp how a proper transaction is to be created. A step-by-step guide would be welcome.