Hotfix for "Design view does not update HTML" and to "Designer inserts a lot of "
A hotfix is now available for issues most commonly described as " I make changes in Design view but Source does not get updated " and " After certain actions designer inserts a lot of in the page" . http://connect.microsoft.com/VisualStudio/Downloads/DownloadDetails.aspx?DownloadID=17185 Please do not be surprised that update is named Office2007-xxxxx since designer (aka Microsoft Visual Studio Web Authoring Component) uses Office 2007 components, similar to Expression Web and SharePoint Designer 2007 and hence update comes as Office 2007 update. The update addresses the following Connect bugs: http://connect.microsoft.com/VisualStudio/feedback/ViewFeedback.aspx?FeedbackID=362593 : DropDownList ListItem Collection
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Read the complete post at http://blogs.msdn.com/webdevtools/archive/2009/03/23/hotfix-for-design-view-does-not-update-html-and-to-designer-inserts-a-lot-of-nbsp.aspx