See #3984 (comment). I assume the user has installed Python under C:\Program Files\.
Also found http://stackoverflow.com/questions/17300638/building-node-js-v0-10-12-on-windows which points to node_js2c.vcxproj being generated with non-escaped paths. I think to correct way to handle this would be to quote the spaced path like C:\"Program Files"\.
@miklen you were able to fix this with reinstalling python to a non-space path, correct?