Saving text file in ASCII mode for the first time

Hi All,

I am sorry this problem is probably easy to fix but I wasn't able to
solve it after reading help and performing some experimentation.  The
problem has to do with saving a file in text mode for the first time,
I ended up losing all spacing information.  I felt that this must be
related to the "keep all spaces" option under document properties, but
even if that's checked, when I save the file, the problem persists.
Is there something that I am missing?

Version: 5.5 running on WinXP.

Many thanks!

Regards,
- Sam