Hello there! That is a great looking Reed vise that you got. Reed is pretty nifty in the way that they come apart. Here is a thread that I did last month on refreshing a Reed.
http://www.garagejournal.com/forum/showthread.php?t=104808&highlight=Reed
First unscrew the dynamic jaw out from the main body and set it aside. Find the set screw near the handle end of that sliding dynamic jaw.
Basically, after you remove the set screw, look at the area where the lead screw connects to the handle....the sort of flattened ball. Behind that if you look real closely, you will see a metal ring with some indentions/slots in it. Take a nice long punch/line up tool and put the pointed end into one of those indentions. Take a normal hammer and start tapping so that you are turning the ring Counterclockwise (the Normal direction to loosen a nut). Take your time and go slowly.
You can help things by squirting some penetrating oil all along your tapping time. It is a fine thread so just keep tapping and turning it out. Take a look at my Reed thread before you start and you will see what it looks like when it comes out. You will also find that it will come apart in two pieces when you get it out so Don't Panic! There is also a washer behind it, so don't forget to pull it out when you pull the long screw/handle out of the jaw.
When you go to put it back together, you put the handle/screw mostly back in (don't forget that washer going in first) and then take the two pieces and put them together around the screw shaft and push it all back in the jaw. Once the threads meet the jaw, just start them Clockwise (Normal direction to Tighten a nut/bolt) with your fingers. After a few turns, you need to install the sliding jaw (dynamic jaw) back into the main body. The reason for this is that you are going to set your "free play" on that lead screw. Make sure to put some anti-seize compound on those retaining ring threads or some oil/grease to make them turn so much easier.
Now you should have the dynamic jaw back into the main body and the lead screw threaded into the main nut....just like a normal vise. Keep tightening that retaining ring down until it gets just a touch resistance. Now try opening and closing your vise jaws. If it is stiff/resistance just back off that ring about 1/4 turn and try again. If it is loose then tighten up that ring about 1/4 turn. Once you have a nice feel with just a hint of freeplay (like the handle may make 1/4 turn before the jaw moves in or out....some may like it 1/8 turn...your call) then you can look in that tiny set screw hole and see if one of those notches in the side of the ring has lined up. Move the retaing ring just a touch either way until a notch lines up in the hole. Tighten your set screw and take pride in owning a great tuned up vise! It's a Reed....it's a beast!
Craig