How do crafted items work?

[Endarire]

I know I need a base item and various components to transmute. When I transmute, are the item stats rerolled with the craft stats (Caster, Blood...) added to it?

[Orphan]

Pretty much. Any etherealness is lost, as is any sockets (and items in the sockets) plus the existing staffmods will be re-rolled (if applicable). The affix generation is much the same as normal, though the item can only get up to a max of 4 additional affixes (plus the preset ones) as opposed to the 6 available to rares.

[Guardian Dragon]

Quick question on the same topic. Chromatic amulets of life everlasting are pretty much the jackpot for melee builds, so what I was wondering, is it possible to have both of these mods on a crafted safety amulet for 29 damage reduction, 30% resistance, etc? And what character level would be best to craft this? Basically the question is this: Are there any limits on what mods can appear on an item beyond the limits for the item type. On hindsight, that question wasn't so quick...

[Lazarus]

No, life everlasting cannot spawn on a crafted amulet because it is a magic-only affix. Only rare affixes can spawn on crafts.

If your question is whether a damage reduction mod can spawn on top of the damage reduction mod inherent in safety amulets, then yes. It just can't be life everlasting, so it's not going to be near 29 ("of life" is 7, so 11 is the max.)