Index: imce_mkdir.inc
===================================================================
--- imce_mkdir.inc	(revision 529)
+++ imce_mkdir.inc	(working copy)
@@ -76,7 +76,7 @@
   $parent = file_directory_path() . ($imce['dir'] == '.' ? '' : '/'. $imce['dir']);
 
   foreach ($dirnames as $dirname) {
-    if (!preg_match('/^[A-Za-z0-9_\-]+$/', $dirname)) {
+    if (!preg_match('/^[A-Za-z0-9_\s\-]+$/', $dirname)) {
       drupal_set_message(t('%dirname is not a valid directory name. It should contain only alphanumeric characters, hyphen and underscore.', array('%dirname' => $dirname)), 'error');
       continue;
     }
Index: imce_mkdir.js
===================================================================
--- imce_mkdir.js	(revision 527)
+++ imce_mkdir.js	(working copy)
@@ -51,7 +51,7 @@
       if (imce.conf.mkdirnum && branch.ul && branch.ul.childNodes.length >= imce.conf.mkdirnum) {
         return imce.setMessage(Drupal.t('You are not alllowed to create more than %num directories.', {'%num': imce.conf.mkdirnum}), 'error');
       }
-      if (dirname.search(/^[A-Za-z0-9_\-]+$/) == -1) {
+      if (dirname.search(/^[A-Za-z0-9_\s\-]+$/) == -1) {
         return imce.setMessage(Drupal.t('%dirname is not a valid directory name. It should contain only alphanumeric characters, hyphen and underscore.', {'%dirname': dirname}), 'error');
       }
       if (imce.tree[newdir]) {