Indeed, this is no reason to stick with RC2, you can use a nightly of 2 to 3 weeks ago.
The problem occurred around 2 weeks ago, when the files to compile are now handed over to the compiler using full paths instead relative paths (to fix a gdb issue).
That means that : D:\My Projects\TheProject\TheResource.rc is now handed over completely like this, where in the past (assuming the cbp file was in the same dir) it would have been handed over as .\TheResource --> thus no spaces problem.
But I think the problem might have bee always there; consider that the cbp is in the TheProject dir, but the resource in a subdir like this :
D:\My Projects\TheProject\All Resources Here\TheResource.rc
the the relative path would have been : .\All Resources Here\TheResource.rc : I wonder if this would have worked in the past.
Can someone with a project with resources experiment with this (RC2 or nightly from more then 2 weeks ago )

So the questions to answer are :
- did we quote the files when send to the resource compiler (I would assume, since we do it when sen to the regular compiler)
- if so can the resource compiler deal with quoted file names
- can the resource compiler deal with quoted file names containing spaces
- what would happen if again we send them relative (note the spaces problem can appear there too as shown in the example above) to the resource compiler --> can we debug into a resource (if not, no need to do the workaround for gdb) ?