There are frequent references to the REO and to the CAG. What is the full name
of these acronyms?

Dear chucksummer,

"REO" is the acronym for "Radar Electro/Optical", the radar unit of
military aircraft.

"CAG" is the acronym for "Carrier Aircraft Group", referring to a
formation of carrier-bound military aircraft.

Sources:

F-16.net: Operational Brevity Words & Terminology, by Dewitte &
Vanhastel, 1999
http://www.f-16.net/pilots/pilotalk.html

XYBER-BBS: MCH 11-F16 Vol 5 Attachment 1 10 May 1996 285 (in Google
Cache!)
://www.google.de/search?q=cache:g-WrNO_IIDEC:mir.irisz.hu/cucc/misc/16v5.ps+acronyms+reo+aircraft&hl=de&ie=UTF-8

SEW Lexicon: Acronyms and Abbreviations - R, by Joe Cyr, 2002
http://www.sew-lexicon.com/cyr_r.htm

Search terms used:
REO CAG navy:
://www.google.de/search?hl=de&ie=UTF-8&oe=UTF-8&newwindow=1&q=REO+CAG+navy&meta=
acronyms reo aircraft:
://www.google.de/search?q=acronyms+reo+aircraft&hl=de&lr=&ie=UTF-8&oe=UTF-8&newwindow=1&start=0&sa=N
reo "radar electro":
://www.google.de/search?hl=de&ie=UTF-8&oe=UTF-8&newwindow=1&q=reo+%22radar+electro%22&meta=

Hope this answers your question!
Regards,
Scriptor

Scriptor, as always, is right on the money. 

I wonder, though, if rather than "REO" you meant "RIO" which can mean
the "Radar Intercept Officer", the second man (woman) on an attack
aircraft.  For example, the character "Goose" in Top Gun.

"A CAG" is the Carrier Air Group, while "The CAG" is the commanding
officer of the Carrier Air Group. The CAG is the top guy responsible
for all of the flying.  He typically carries the rank of Commander
(O-5) which is one step below a Navy Captain, the rank of the
commanding officer of the entire ship.  Sometimes, he wears a jersey
with the letters "CAG" stenciled on the back.

weisstho-ga