This is ok(without space):
li.highlight{
background:#FF9900 none repeat scroll 0 0;
}
This will not work(with space):
l
You can think of li .highlight as having an implied * in it. It is equivalent to li *.highlight.
li.highlight matches an li element with a class of highlight: .li .highlight with a space matches an element with class highlight which is inside of an li (a descendant): for example, the span in - OMG NO WAY!