I have a text file (navigation file .sp1 ) that is comprised of multiple "compiled" 2D line georef data, col 1 identifies the unique 2D line data . I would like to ignore header data, split the data into individual .sp1 files and save to a folder.

There are two options as I see it

1. You can try and use a CSV reader. The parameters allow you to be pretty specific about what you want to be read in.
   1. You can set the delimiter (in your case "space")
   2. You can specify on which line the Data actually start (from the screen shot it would be line 21)
   3. You can then also manually specify column names
2. The next option is to use a TextFile reader. This is a good option if the length of the header might change.
   1. You can filter out the Header lines with a Tester (eg. Starts With H)
   2. you will then need to split the line data in to attributes based on the delimiter

Once you have your table in the right format with the correct column names you can then write the data out to your preffered format.

FME writers have the option to "Fan Out" a table into multiple files based on an attribute name.