Index: /CKEditor/trunk/_source/core/tools.js
===================================================================
--- /CKEditor/trunk/_source/core/tools.js	(revision 3767)
+++ /CKEditor/trunk/_source/core/tools.js	(revision 3768)
@@ -1,3 +1,3 @@
-/*
+/*
 Copyright (c) 2003-2009, CKSource - Frederico Knabben. All rights reserved.
 For licensing, see LICENSE.html or http://ckeditor.com/license
@@ -228,5 +228,5 @@
 			};
 
-			this.htmlEncode = ( standard( '>' ) == '>' ) ?
+			var fix1 = ( standard( '>' ) == '>' ) ?
 				function( text )
 				{
@@ -236,4 +236,15 @@
 				} :
 				standard;
+
+			var fixNbsp = / /g;
+			var fix2 = ( standard( '  ' ) == '  ' ) ?
+				function( text )
+				{
+					// #3785 IE8 changes spaces (>= 2) to  
+					return fix1( text ).replace( fixNbsp, ' ' );
+				} :
+				fix1;
+
+			this.htmlEncode = fix2;
 
 			return this.htmlEncode( text );