The manifest works fine in Space, as long as it isn't wrong. The problem is, if your manifest file is bugged and you load it in Space then you can't remove the bugged version. The only solution so far is to uninstall/reinstall Space on the device, thereby wiping out all it's files including your buggy manifest. Hopefully the devs will add some way to wipe files at the application level in the next release.
hhangus is correct. Chrome allows for errors in the cache manifest but the webview provided by android fails to handle error conditions correctly. We have made some minor changes to the handling app cache in 1.1.3 of the Space Client but we are unable to fully workaround the bugs.
So if your cache manifest file complies with google's definition of correct it should cache the files correctly. This is a very high bar to set.
This is just one of many bugs and limitations of the webview provided by google as part of the android SDK.
We are currently developing a version of Space that uses a custom chromium build that is proving to be much more stable and capable that will give developers a single modern chromium development target across all 4.x devices.