I'm using Office 2000. When I have Word open, at the top menu I click on tools, then autocorrect which I assume is the same place you are describing. (a few different ways to get there).

If I type in two space in the "replace" field and then a single space in the "with" field, the OK button does not light up. It stays dim. It will only accept some type of character, not a space from the spacebar.

Is there a special character I can enter for a "spacebar"?

Maybe Office xp or Office 2007 will accept a spacebar, I'll have to try that on my buddies computer which has Office 2007.

Just tried it on my buddies laptop running office 2007 and it's a no go. The autocorrect REPLACE and WITH fields have to have some type of character. It will not accept only a space or two spaces.

This was the very first thing I tried when I started having this problem with the new laptop. So still looking for any suggestions.