A bit of Chinese computing history: In the past when we didn't have unicode, Chinese was represented using two 8-bit ASCII. To help word processor wrap a long line properly (i.e. not cutting a 16-bit Chinese character off between two lines), some people started to add a space character in-between, your text source probably is this.
From what I see on your Chinese Bible, it seems like that you have space between each Chinese character. For Kindle and any modern browser/word processor which handle unicode well, this space is not necessary.
So, try this one:
http://www.ccim.org/~bible/bible/pub/hb5.txt.gz (Traditional Chinese character set)
Some reader asked for Simplied Chinese, use this one:
http://www.ccim.org/~bible/bible/pub/hgb.txt.gz
(Courtesy CCIM
http://bible.ccim.org/dcb.html)
I opened these two files, uncompressed, using MS Word, it pops up a File Conversion box, just accept the suggested default (i.e. hb5.txt use Big5, hgb.txt use GB), you will have the good-to-go full text without any unnecessary spaces. I.e.
NO NEED to delete any space.
There should be only two space characters for each verse, one between the book and chapter number, the second one after the verse number, before the text. e.g. "1Pe 1:15 ". You may notice that there is always a big space (double width space like a full size Chinese character) before the character "神" (God). You may retain that untouched for historical translation reason.
Good idea to use lower case book abbreviation.
PM me if you want me to try out before release.
God bless,
leo.