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There is a known issue with Outlook Express 2007 and the advice from Microsoft’s support team is to check: Tools > Options > Spelling > Autocorrect Options. Is there checked setting for 'Use contextual spelling', if so uncheck this setting.
This setting checked by default in Outlook 2007 and causes double spaces when using apostrophe’s. The latest Outlook 2007 update can be downloaded here: http://www.microsoft.com/en-gb/download/details.aspx?id=35718
We have tested this issue on Outlook 2013 and have found that it no longer exists on the latest versions of Outlook. It’s also worth noting that Microsoft’s General Support of Outlook 2007 expired in 2012.
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