It is recommended you install Leadwerks to C:/Leadwerks on Windows, or you will have to configure a lot of things yourself. We do not have full control over the Android tool chain, and it is very badly designed. Our system makes the process about ten times easier, but Android is still a mess and there's only so much we can do to protect you from it.
The project manager can handle spaces. It removes the spaces when it creates the path, because NDK cannot handle spaces.
If there is a separate bug from the original issue please create a new thread.