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The name for Palapatine's reforms is called the New Order. Basically, the Clone Wars are suppossed to be so devestating that galactic order begins to break down for the first time in about 20,000 years. The amazing acts of destruction cause people to really step back and consider. This is one reason Alderan gets rid of most of it's weapons.
Palpatine restores order and a grateful and war-weary galaxy pretty much gives him whatever he wants. I think at that time, he declares himself Emperor. So... probably somewhere about 18-20 years before Episode IV is where most timelines place things.
Thanks for the help. I knew that it occurred before A New Hope as in that movie there are numerous references to the Empire, the Imperial Senate, and Imperial ships.
The year hasn't been nailed down, pending Episode III, which takes place 19 BBY (Before the Battle of Yavin), the end of the Clone Wars. We assume the Empire begins either that year or shortly thereafter.