I cant see anywhere in the code mentioning trying to use the space key,
so I'll guess its the apparently blank junping section.

Code:
action player_move
{
	player= me;
	wait(1);
	camera.genius = player;
	shift_sense= 2;
	var space_held = 0;         //<<Added
	
	while(player!=NULL)
	{
		//Walking function arrow keys
		move_vec[0]= (key_cuu - key_cud)*8*time;
		move_vec[1]= (key_comma - key_period)*6*time;
		
		//Stair Climbing and falling
		vec_set(temp,my.x);
   	temp.z -= 4000;
   	trace_mode = ignore_me+ignore_sprites+IGNORE_MODELS+USE_BOX;
   	move_vec.z=(-trace(my.x,temp))*3*time;
	   player.pan -= (key_force.x)*1.5*time;
	   move_mode = IGNORE_YOU + IGNORE_PASSABLE + IGNORE_PUSH + ACTIVATE_TRIGGER + GLIDE;
  	   ent_move(move_vec,NULLVECTOR);

  	   
		//jumping
		if(key_space==0)    
			space_pressed = 0;
		else    
		{
			space_pressed = 1;
			if(space_pressed==0)   player.z += 10;
		}
	
		
		//Running with arrow keys
		if(key_shift == 1)
		{
			move_vec[0]= (key_cuu - key_cud)*4*time;
		}
		player.pan += (key_cul - key_cur)*2*time;
		ent_move(move_vec,NULLVECTOR);
		if(move_vec[0]== 0 && move_vec[1]==0)
		{
			//Idle
		idle_percent= (idle_percent +5*time)%100;
		ent_animate(me,"stand",idle_percent,ANM_CYCLE);
	}
	else
	{
		//Running animation
		if(key_shift)
		{
			run_percent = (run_percent + sign(move_vec[0])*5*time)%100; 
			ent_animate(player,"run",run_percent,ANM_CYCLE); 
		}
		else
		{
		//Walking animation
		walk_percent = (walk_percent+ sign(move_vec[0])*5*time)%100;
		ent_animate(player,"walk",walk_percent,ANM_CYCLE);
	   }
   }
   

	   //The Camera
		vec_set(Camera.x,player.x);
		camera.z += 39;
		camera.pan = player.pan;
		temptilt += (key_pgup - key_pgdn)*4*time;
	   if(key_home){ temptilt =0;}
		if (temptilt > 75)
		{
			temptilt = 75;
			
		}
		else
		{
			if(temptilt < -75)
			{
				temptilt= -75;
			}
		}
		camera.tilt =0 +temptilt;
		wait(1);
	}
}



"There is no fate but what WE make." - CEO Cyberdyne Systems Corp.
A8.30.5 Commercial