Motorola Droid X2 :: Multi-Touch Keyboard Not Functioning?

I, until about two weeks ago, was using the mult-touch keyboard option and it was working fine. About a week ago, anytime I would type something and hit the space bar, the zoomed in window for texting would zoom back out to the window that appears below (stock Motorola text software). I tried it again and the same thing happened. Everytime I use the space bar in multi-touch, it would exit out of the text editing and show my text below in the skinny rectangular "viewing" bar. I also tried this in Gmail. The exact same thing happens. I am using Swype, which I would rather not use, but would like to know if this is fixable without doing a factory reset. Doing a factory reset is far too painful with having to download all the apps I once had and having to start over in certain games because it erases any progress, etc. If the only option is to factory reset, then so be it. That needs to be a last resort though.