[MiKTeX] MiKTeX options and pathnames with spaces

[Richard Q. <rq...@vc...>]

I've been trying out a new editor with MiKTeX and I want to specify the 
output directory  where the path name includes spaces--e.g.  
C:\Documents and Settings\TeXstuff.  Although wrapping the tex source 
name in quotes works, using the option --output directory= "C:\Documents 
and Settings\TeXstuff" causes TeX to halt with an undefined contol 
sequence error message

This is TeX, Version 3.141592 (MiKTeX 2.4)
! Undefined control sequence.
<*> &pictexwd C:\Documents

Using a path with no spaces works correctly. 

Anyone have a workaround?