My scenario is:
Not allowing spaces at starting position of textbox after enter one or more characters text box allows spaces
Below not applicable to my sce
You say option number one is not applicable. How about a version of option number one that uses the same event and similar code but inside a second IF statement. This keeps spaces from working unless there are other characters in the text box.
if (textBox1.Text.Length == 0)
{
e.Handled = (e.KeyChar == (char)Keys.Space))
}