Multi-edit does not work in spaces and there is currently no way to select all the clips. I have added this to the list of features for the next version.
The layers in a space are totally seperate to the main layers. Each space has its own set of layers. The active layer in a space applies only to that space and has not link to the main active layer. I realise thiss can be confusing but it can also be very powerful.
In v3.5 the layer opacity for the layer the space is on applies to all the layers within the space. So when you fade the layer with the space out it will fade out the whole space.
The issues with the handle numbers should be fixed when v3.5 is released too.