Spaces are not supported by Windows (because they seperate the .exe/command from additional parameters).In case of a directory called Unreal Tournament 2004 we have two of them.So we need the quotes here.Linux is easier here, it would be like .../Unreal\ Tournament\ 2004/...
So there is no way to fix this? Oh well, thanks for the hint.
If set compatibility mode for XP and disable visual styles, this would help to get this bug rarer. And close\re-open editor will help too
And if that's too boring for you, just install bblean (BlackBox windowmanager for Windows). If you don't know how to do: ask Raj