How do they work exactly, they say +1 here, +3 there, does that increase the morale over 100%?  If you have one that reduces morale does that cap it below 100%?  The book doesn't exactly explain how they work.  It says morale starts at 100%, so I'm assuming you can have morale at 105% if you have a nice ship.  The book doesn't clearly say one way or the other though.

You can go over and under the 100% cap. The higher the morale, the better the crew can function when the morale starts dropping. It explains this on page 193 second column. It is a little obscure though.

Thanks, completely missed that paragraph.

RT rulebook, pg 193, Constructing a Starship

"Note that certain Components can increase a ship's Crew Population or Morale level above 100. This is acceptable, and should set the ship's new maximum level of Crew Population and Morale. If damaged, a starship's Crew Population and Morale can be restored back up to these maximums, but not above them.  This may seem strange ... however just consider these Components to be increasing the loyalty of the crew, or the amount of warm bodies aboard the ship, and subsequently making either value slightly more resilient to losses."

I'm just wondering, as it's not mentioned in the above paragraph, but if something lowers the Morale Rating at Ship Generation, would this lower amount be the new maximum also?

Yes, it lowers the maximum

Cool. Thanks Dvang!