In our organization we often send text based hyperlinks to folders and files we work on. Most of the time I just copy the path out of Explorer and insert it into the message body and put file:// if front of it so that Outlook will automatically create a link out of it.

There is extra white space in my content. Because Outlook renders HTML using Microsoft Word, white space is sometimes inserted above an image. This occurs because Outlook renders email on a computer screen similarly to how print preview shows how the email will look on a printed page.

This works great except if the file or foldername contains spaces. Then it breaks the hyperlink at the first space.

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How can I make Outlook to create a link including spaces? Renaming the files and folders is not an option to us.

You can indicate the beginning and the end of the link by placing it between < and >. Your typed linked will then look something like this;
<file://c:folder with spacesfile with spaces.doc>

Outlook For Mac 2011 Folder Contains Excess Whitespace

After pressing ENTER or typing a space behind the >, Outlook will automatically turn it into a link. This works for all message formats (Plain Text, HTML and Rich Text).

Outlook For Mac 2011 Folder Contains Excess Whitespace Failure

Note: If Outlook doesn’t automatically create links for you in Plain Text messages see; No Hyperlinks in Plain Text anymore