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Starting with Emacs 22.1, SPC no longer completes file names in the minibuffer, so that file names with embedded spaces could be typed without the need to quote the spaces.
You can get the old behavior by binding SPC to
minibuffer-complete-word
in the minibuffer, as follows:
(define-key minibuffer-local-filename-completion-map (kbd "SPC") 'minibuffer-complete-word)