So the smugglers instincts ability States you get to "move x spaces". This is worded differently than the normal "gain x movement points" on other cards. How does this interact with pg 11 of the RRG which states, "A figure must spend one additional movement point to enter a space containing difficult terrain."

Since he doesn't get movement points can the alliance smugglers just ignore the penalty for difficult terrain when using this ability?

Short answer: Yes

Long answer: Still yes, and also check the RRG page 19 under movement. It specifically mentions instances where I says "Move X Spaces"

Hope this helps!

Moving spaces does not cost extra movement points because movement points are not used when moving spaces. (Gaarkhan's Charge also uses moving spaces, it ignores extra costs.)

· Move X Spaces: If an ability moves a figure a listed number
of spaces, this movement ignores movement point costs. All
other effects of terrain and figures apply (for example the
figure cannot end its movement in another figure's space).
When moving in this way, a large figure's base cannot rotate
and must retain its orientation.