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

Google Virtual Keyboard with layout selector using a drop-down menu

Google Web Elements allow you to easily add your favorite Google products onto your own website. I will talk about the Google Virtual Keyboard.
As you can see on its presentation page, Google has implemented a virtual keyboard that lets you type directly in your local language script in an easy and consistent manner. Google's virtual keyboard allows developers to enable virtual keyboards on any text field or text area in their webpages.

How to attach a Virtual Keyboard to inputs on your site
As explained here and here, the steps are:

1. determine the language(layout) for the keyboard
2. determine the ids of the input elements where the keyboard will be active
3. put some javascript code in the html source of the webpage

I needed to be able to select when browser the layout. I found an example here that allows to switch the layout to some predetermined layouts, but this wasn't enought.

After some google I found an example that gets all the available layouts and makes a button(anchor) for each one, so when clicked the layout of the keyboard is changed. 

I prefer using a drop-down menu so the code is:


// Load the Google Onscreen Keyboard API
google.load("elements", "1", {packages: "keyboard"});

var kbd; // A Keyboard object.

// Draw a list of keyboard layouts in their native languages.
// User can click any of them to switch to that keyboard layout.
function drawMenu() {
 html = ["<select onchange='kbd.setLayout(this.options[this.selectedIndex].value)' >"];
 html.push("<option value=\"en\" >", "Select a layout for the virtual keyboard", "</option>");
 for (var i in google.elements.keyboard.LayoutCode) {
  var code = google.elements.keyboard.LayoutCode[i];
  var name = google.elements.keyboard.getLayoutName(code);
  html.push("<option value=\"", code, "\" >", name, "</option>");
 }
   html.push("</select>");
 document.getElementById("kbSelect").innerHTML += html.join("");
}


function onLoad() {
 // Create an instance on Keyboard.
 kbd = new google.elements.keyboard.Keyboard([
  google.elements.keyboard.LayoutCode.ENGLISH],
  ["id1","id2","id3"]);
 drawMenu();
 kbd.setLayout("en");//default language
}

google.setOnLoadCallback(onLoad);


The code works very good so I implemented it in my website design toolkit in a PHP class called PVirtualKeyboard(source code here).