Apple Loop Utility and a strange bug

I use Apple Loops Utility a lot and a bug just appeared. All of a sudden my space bar no longer starts and stops playback of a file. I upgraded to 10.8 last week but I don't think that was directly an issue since I had successfully used apple loops utility since then and used the space bar. But this morning I opened it and space bar doesn't work. I checked in other audio apps and the space bar still works their as expected. I don't think ALU has a preferences file or anything either. I honestly have no idea what is up. I even reinstalled the OS, deleted and redownloded ALU, and I am out of ideas. Any ideas at all?