Space tea can be made a number of ways.
The first is to start with a tincture. You can make tincture by adding bud, stems, kief, or anything else containing THC into a high proof alcohol, my favorite is good Anejo tequilla. Let it sit for a few weeks/months until there is visible change. Sometimes it turns green. If you use a lot of kief and hash it just starts to look thick and golden. Strain that shit and bottle it. About 3ml is a good dose. Just add a small spoonful or so to any hot beverage. If you like tea I recommend roobis.
The other way I have tried is to save up stems, break 'em up, and add boiling water to a palm full. Personally I don't use this method any more because I can easily toss my stems in with a batch of tincture or butter. Butter can be used in hot chocolate, which, as stated above, is delicious. However, when I was in college and living in a dorm, an electric kettle and a tea pot weren't very conspicuous marijuanna parifinalia.
Assuming you've used enough stems you get a very heavy stony high that generally ends in a long nap. Best consumed in the evening. I can only assume that boiling water added to bud would produce an even better effect, but I've never tried it.
THC is not soluable in water, but how do you think most bubble hash is made? Water is used to rinse the hash through a series of screens to sepparate the plant matter and various particle sizes. Hot water simply breaks the bits of kief off the stems and leaves it in a readily consumable form. I have never tried making ice tea, or drank bubble water. I would be interested to know if anyone has had any luck with it, though.