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If you are in Book View you are subject to Qt's interpretation of what you want. We've been making it as good as it can be, but it will never be suitable for giving you the exact characters and formatting that you want. That's why Code View is available.
If you press the spacebar, then as far as I can see you get a simple space as long as there was no space next to where you pressed. If you have a space before/after where you press, and if you are next to a span tag (and probably several other special cases), then Book View inserts an nbsp entity to keep your space - since if there is one or more adjacent simple spaces they are treated as one.
At best you can use Saved Searches to replace the nbsp entities with spaces, using groups to do the common ones (space followed by nbsp, nbsp followed by <, etc.) but if you are actually using nbsp entities for some reason, then it does become harder.
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