Try this simple whitespace remover

Code:
This should handle any variation of whitespace:

declare @text varchar(500)
set @text = 'delete      white      space' -- add as many spaces between the words as you want...
set @text = replace(replace(replace(replace(replace(@text,'     ',' '),'    ',' '),'   ',' '),'  ',' '),'  ',' ')
print @text

Note: if you know that your whitespace count will never exceed
...