After applying SP3 for LiveCycle ES Update 1, emails sent using the the Email DSC "Send with document " will have all white spaces removed from the subject line and body. This affects both plain text and html formats and with any encodings tested.
LCES Update 1 SP3 Quick Fix # 3.06 fixes this issue. This patch can acquired by contacting Adobe LiveCycle Enterprise Support. A work-around is to make the email html format and use the escape sequence   to define the spaces (i.e. This is a test).