This can be trying to say the least.
Assuming the spring is OK and you’re just replacing the rope.
Remove the rewind assembly from the engine. Wind the spring counterclockwise until it is tight, then back it off until the hole in the pulley lines up with the hole in the rewind housing. Clamp it in place with vise grip pliers or a c-clamp so it can't unwind on you. Then feed the rope through the housing and through the hole in the pulley. Tie a single knot in the pulley end, then release the clamp and slowly allow the spring tension to rewind the rope. Reattach the handle.
If the spring is broken a repair involves driving out a roll pin that can damage the housing without the proper tools.
Rick, March 2006