The problem [1], [2] is /etc/bash_completion.d/acroread.sh. 
Just remove it and then execute . /etc/bash_completion.
Worked for me.

[1] 
http://stackoverflow.com/questions/5852389/bash-autocomplete-doesnt-escape-space-and-doesnt-mark-directories-in-ubuntu-11
[2] http://forums.adobe.com/thread/745833

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https://bugs.launchpad.net/bugs/768876

Title:
  terminal autocompletion adds space after "cp" target folder using Tab

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