I would like to use git-bash come with github client on a windows 7 (32bit) machine. Somehow, the git-bash has already learned the $PATH variables from windows
The answer for me was close to that of Seagal82.
I added the following line at the start of [PATH_TO_GITBASH_INSTALL]\etc\profile:
export HOME="/c/Users/Username\ with\ spaces/"
Then I started a new git bash window and all the paths in $PATH using $HOME got replaced with the anti-slashed space and work correctly.