No Word 2007 here; I went back to Word 2000 (actually prefer it over the newer versions).
I agree - Word 2003 here.
Thanks for the screenshot, so it works with older versions of C:\Windows\System32\msftedit.dll
My Win7 version is 21 November 2010, 04:24:01, 592,348 bytes.
You can load several "W" versions with msftedit.dll
50W has the space before problem, 20W and 60W don't (WordPad uses 50W)
50W is almost a factor 2 faster, but I hate the way it handles space before the paragraphs.
So in the end I voted for the most advanced msftedit version, which is 60W

Google phrase searches for "RichEdit70W" and "RichEdit80W" return few results. They exist but nobody uses them.
The topic pops up frequently here, see e.g.
RICHEDIT diferences between RICHEDIT50W and RichEdit20A