Not true, you only need a Game and Text folder there is no need to have the others unless you are using files which go in those folders. I know that is the instructions the dev's gave day one of unlocking mods but it has never actually been true.
As to the OP's issue, I don't believe its a problem of spaces in the path as pretty much everyone has the space in My Games.
Generally unless two mods alter the same data then they are not able to conflict or interfere with each other. Even when the internal names overlap the game throws and error but still launches and runs fine with a bit of glitchiness regarding the duplicated name but otherwise works fine.
Are you able to download and run other peoples mods?
