It should work fine as long as the environment and the project is setup correctly.
I just tested with spaces in the project folder and it worked fine for me so it must be something specific to your table name. Is your actual table name "Soberhouse Query" with the space in it?
If you are connecting to a 32-bit DSN then your project build configuration should be set to x86. If you are connecting to a 64-bit DSN then your build configuration should be set to x64. What is your current configuration set to?
The 19703 error on the connect simply means that the connect failed which usually indicates that the connect statement is incorrect or the ODBC driver or DSN is not set up properly.
If you add the following to your program's working-storage:
01 MFSQLMESSAGETEXT PIC X(256).
Then this variable will contain the actual error message text after the error occurs which may give you some more information to the cause of the actual error.