Google Virtual Keyboard inserts non-breaking space instead of space

I have summited a bug for the Google Virtual Keyboard: more details at http://code.google.com/p/google-ajax-apis/issues/detail?id=494
What steps will reproduce the problem?

1. implement and enable a google virtual keyboard for an input element(text or textarea) on a website
2. type some words and space in that input box( for example "google bug")

example:
1. open www.google.ro (it has a virtual keyboard for the search input) or http://www.revistapadurilor.ro/index.php?section=KeywordSearch (this webpage has a text input in the central part that has a virtual keyboard with romanian layout enabled)
2. write the text: google bug
3. copy the inputed text and use a HTML encode utility(like http://www.cafewebmaster.com/online_tools/htmlentities ) to encode the text to HTML entities

What is the expected output? 

The expected output is the text with simple(regular) spaces

What do you see instead?

Instead of inserting simple (breaking) spaces, the google virtual keyboard inserts non-breaking space.
Example: google bug or (copy pasted):"google bug"


What version of the product are you using? On what operating system?

latest (script loaded from http://www.google.com/jsapi )

Note: 
I checked this bug on the romanian and english layout.

Update:
Seems to be a Chromium related issue. This bug does not appear on Mozilla Firefox. Submitted an issue to Chromium: http://code.google.com/p/chromium/issues/detail?id=49902