Does the "Action" on this damage card get played immediately (when it is dealt) or is it supposed to be resolved another time?

I need help interpreting this card and others like it. Damage Cards with the ACTION note.

May have found my answer on page 15 of the rulebook: #10 "This Damage card's text has an ongoing effect that applies during each Activation phase"…would that be the answer or is that just referring to the "Damaged Engine" card that is used in example on page 15?

The top section of the card is done every round (Or whenever it applies). The ACTION part is only done if you spend your action phase to do it. Basically the pilot is spending that part of the round fixing the damage and can't target lock or focus or whatnot.

Great! I figured it was an Action Phase thing but I never considered that it replaced your option at choosing another action. I would assume this doesn't apply for pilot abilities as this particular damage card is just for the ship?

Any card that has something listed as Action: [stuff] gives you a new option for your action for the round. Some critical hits use it as a way to negate them, but also some upgrade cards use it to give you new actions.