I ran into a "wrong name" problem for an upcoming trip - my middle name was misspelled (out by one letter). My booking was made by my TA and includes travel on AC metal to Europe and LH within Europe and back to Canada. Both my TA and I called AC and both times they said the only way I could get my name corrected was to cancel my ticket and rebook (paying a cancellation fee and rebooking at the current higher rates). However, they would note the error in my file and said it should not be a problem.

I decided to call LH to get their view on this since 3 of my 4 flights were on a separate LH PNR (even though the ticket was 014 AC stock). Their view was that my name absolutely should be corrected and if this was their ticket it would take them all of a few seconds to fix it. Since it wasn't their ticket they couldn't do anything but they strongly advised me to get it fixed. There was no way to guarantee that if someone along the way picked up on the error they wouldn't deny me boarding and I'd be SOL, regardless of any notations on my file.

By this time I was getting concerned about what might happen once I got to Europe and decided I wasn't willing to take the risk of being denied boarding. I called my TA and insisted that they get this fixed (since the problem was actually caused by them). The TA called AC a second time and this time had a much better outcome. Apparently AC can correct name misspellings without having to re-issue tickets. For a fee of $50 they fixed my name (the TA ate this cost) and now I'm good to go.

I can't speak for others, but given what I've read online (both in various travel forums and newspaper articles) travelling on a ticket where your name doesn't exactly match your government ID can lead to significant headaches. I'm not willing to take the chance of missing a flight overseas because of it. That said, I'm not sure my concerns would apply to the OP since his issue wasn't actually a misspelled name, just the insertion of a space.

Here's a couple of news stories on misspelled names:
http://www.cbc.ca/news/canada/edmont...cket-1.2891783
http://www.telegraph.co.uk/travel/ad...rline-tickets/