We posted a story earlier linking to news that Microsoft's Xbox Live! online service was running out of gamertags and stopping users from creating spaces in their names when signing up. Microsoft's Xbox Live! Director of programming has mailed in to let us know that it isn't true, there are no problems with gamertags and users can still create spaces in their names if they wanted to.
Spaces are allowed. However, if you collapse the name by removing the space and it equals another tag already in the system without spaces (or with different spacing) then you will not be allowed to use it.
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