We do a fair amount of reverse engineering. The plus side to this process is the end result - an electronic representation a physical part. The minus is the steps it takes to get there. Without experience and a good plan, working with point data can be very discouraging.
For simple, less complex projects, we use our Faro arm to gather the point data. The points/splines are then exported to CAD (SolidWorks or Pro/E) and the model is built. To acheive a good model, this can be a very tedious and lenghty process.
We have the more complex, stylized parts scanned with white light or lazer and then surfaced with Raindrop Geomagic. The surfaces are then imported into CAD and the solid is built. The surfaces export very well but I have to say that it takes a little trial and error in determining the best method in preparing the Geomagic surfaces for your application and CAD platform (number of patches, split locations, etc).
The nice thing about software like Geomagic is the polygon model that the software creates (.stl) can be directly exported for Rapid Prototyping, analysis, or even tooling. Once the shape has been tested and approved, the surface/CAD model can then be created and documented.