Indeed, my mistake, translate only replaces by the first character. Who ever came up with that idea? There is a replace function but that is only available in XPath 2.0 and Switch uses 1.0.
Before reverting to XSL or scripting I would try this app: https://www.enfocus.com/en/appstore/pro ... ng-replace
The fact that you want to replace a space and not a string like zdhr#$22 will probably make it tricky, but the app has support for regular expressions, so it is worth trying.
Before even doing that, where do you want to use the string? If you use the information in the Parameters property of "HTTP request" for example it will be encoded automatically and spaces will become %20 etc.
And before even doing that, if it is a complete URL that is in your XML, go pull the ears of the person who wrote that URL there without encoding it as such! And do not let go until the problem is fixed at the source.