Pretty Print Tidy is causing this problem.
In 32 bit with it turned off the problem occurs.
In 64 bit it is turned on by default and there is no "Preferences" button to turn it off, so this problem is never seen by 64 bit users.
In 32 bit, once you have the problem you cannot change to pretty print without first removing all nbsp.
I am with @jackie_w on avoiding sgc-n because I use code view all the time and they make life very difficult.
This is not the complete answer - see my next post - @meme has the answer
Last edited by boatat72; 12-18-2012 at 01:33 PM.
Reason: further information