I just downloaded the latest again this morning. The timestamp on the .js files in the .zip file is 06/18/2008 11:10 PM.
This issue is NOT fixed in FireFox.
Again, I'm using the sample provided in your install. It occurs only in FireFix, when the virtual folder has a space in the name. The test you performed and screen captured should be fine to test - if you use FireFox. (I've not updated to FireFox 3 yet)