yes, I can confirm it's still broken.
If I start bash without the bash-completion, it works:
$ bash --norc
bash-4.0$ ls Ubuntu\ One/<TAB>
060428-bagger288-garzweiler.jpg Shared With Me@
Pics/ stats/
but if in that same shell I load in the completion,
bash-4.0$ . /etc/bash_completion
bash-4.0$ ls Ubuntu\ One/<TAB>
completion stops working.
** Changed in: bash-completion (Ubuntu Karmic)
Status: Incomplete => Confirmed
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no tab completion on path that contains a space
https://bugs.launchpad.net/bugs/419509
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