Spaces in file/folder names


I have written an automation server; the application worked flawless, but
clients could not connect to the server. Inspection revealed that in the
automation database in the registry (under HKEY_CLASSES_ROOT\CLSID\{MyApps
ClsId} ) a subkey 'LocalServer32' existed with a '(default)' entry which
equals "". I would expect that this entry would contain the automation
server's executable name. When I entered the exe name by hand (including
full path) the client program could find the server only one time. Checking
the '(defaults)' entry again revealed that the entry which I made by had was
erased, it was "" again.
The reason for this is that the full path file name of the executable
contained a space, because the program was in a folder named 'MyApplication
version 2'. When I renamed the folder, everything worked fine, client could
connect to server, etc etc.
Now my questions: Is it forbidden to have spaces somewhere in the server's
path? Is this issue somewhere documented?
I use Delphi4 professional edition under Windows NT.

Tjipke de Beer (