AkelPad

1,Yes,Chinese need not space in the middle of word and word,but it isn't means that a novel is "one" long word.
2,It seems that the hotkey"Alt+W" is disabled in both version 3.6.0 and 4.0.3.

1. This is a normal behavior. Because the next line doesn't have spaces (better to make screenshot with SpecialChar plugin).
2. Are you sure you are using language DLLs from 4.0.3?

It seems that just images can show my meaning: