The ringtones/notification tones are .ogg or .mp3 and have no spaces. This is not the problem.
The problem originated because of samsungs music player. When I downloaded or took copies of system notification/ring tones (from other android phones) and put them on my sd card in the media/audio folder so that I could use them, the stupid music player put the ringtones into my playlist. To stop this, I put a .nomedia file in the folders. This however, prevented me from using the files as ring/notification tones. To get around this, I would copy the tones on my SD card and paste them into the system/media folder, reboot the phone, and these tones would now be available for me to select in any application that uses notification tones. I did this with DL05 and DL30 and initial EB01 SC versions. With SC2.8, when I did this process, the newly added tones to the system folder were not recognized, yet these were the same files that I had used before.
I've been messing around for a while now trying to figure this out, so I removed the .nomedia from my tones folders to allow me to select these tones from the SD card. I then found out that the new music player (version 2.2.1) no longer shows these tones as songs. So therefore, I know have a solution to my problem.
Though it does not explain why the newly added files in the system folder were not recognized. However, randomly, after several reboots and clearing of caches for this reason or that, I went to change a notification tone, and saw that I had two copies of several tones. So now all of a sudden, the phone is recognizing the tones I added to the system/media folder. Weird that it didn't recognize them after the initial reboot.