Space is handled in the filenames, you just need to surround the filename with double quotes, which is standard for Windows. I usually just drag the file from Windows Explorer into the command window.
I'll look into the batch processing and the destination directory would probably be better to be the same as the source file. The -c option really doesn't need to be used, you can just reduce the number of colours to save space. The default of 64 colours works about best but you don't need anymore.