I'm just waiting for the day you can buy "kit spaceships." Heck, look as Scaled Composite's SS1. The thing is basically skinned like a lightweight aircraft. Reentry is possible due to the ingenious "feather" system. And it's got a rocket that burns... I think it's a rubber-based fuel!
Re-entry at SS1 is mainly possible due to the fact that it doesn't reach orbital velocity. The Shuttle, for example, returns into the atmosphere at about Mach 24. SS1 doesn't even get near that. It follows a ballistic trajectory, so its vertical speed when starting re-entry is exactly 0. The feathering just makes sure it doesn't speed up too much.
And yes, it runs on rubber and laughing gas. It's a genious combination for what it's supposed to do, but I doubt it'll ever get you into orbit.