Give him space! You know the saying that says, "Be careful what you wish for"? It's your new job to give him space, and it's your goal to be the employee of the month. What does this mean? Don't initiate ANYTHING. No texting. No calling. No myspacing. No facebooking. No emailing. No hanging out. If he wants to talk to you, he's going to have work at it. After all, he's the one who needed space, not you.
Don't tell the world. Ok, so he says he needs space. Don't tell everyone that he said it. The more people you tell, the better the chance is that it will get back to him, and he'll know exactly how upset you are. And believe me, you don't want that. The fact that he said he needs space is probably making him feel pretty over confident, so don't play into his plan. Sure you can tell your close friends, but I wouldn't tell any of your mutual friends. Unless, of course you want him to know. And if you want him to know that you're upset, you should probably stop reading this article now. ;-)
Don't constantly remind him that you're giving him space. Don't say things like: "Well, I guess I'll end this conversation now, since I'm giving you space." He knows what he said, and your actions will speak louder than words. So, by showing him that you're giving him space, you're saying way more than you could by telling him repeatedly. Instead of warning him that you're ending the conversation, just end it. This may keep him coming around more because he'll be wondering why you don't seem like you need him.
Find something to do! Don't just sit around moping. You're an amazing person and you deserve to have fun. Throw a party, go see a movie, buy a new lip gloss, read my article about how to get over a crush...but seriously, do something to remind yourself how cute and fun you are.
Cry if you want to. It's ok. Seriously, he just basically told you to get away from him. You have every right to feel sad and confused, but just don't spend too much time focusing on the bad. Plus...it might not be so bad! Identify your feelings, but don't dwell on them. Is he crying over you? Maybe, but probably not. So don't waste too many of your tears.
Smile and be happy when you are around him (and even when you are not). You're never fully dressed without a smile. Even if you feel like you're going to cry, you have to look like you're having the time of your life. He'll expect you to be really upset, and it will make him feel completely shocked if you act like his request for 'space' didn't bother you at all. Your world is not shattered because he wants "space". For all he knows, you were feeling a little smothered in the relationship too. So, you just keep living your life, and if it's supposed to work out, it will. But if not, there's something better in store for you. So get excited for what the future holds!