marmalad and El Boletaire Underave are right that you can't start with a space, but that's not the full story. According to the XML spec, you can't have anything at all before the XML prolog.
Since you are using an XML declaration, you must start your file with
<?xml version="1.0" ...
In some cases, non-printing characters like the byte order mark (BOM) can cause trouble by taking up the first few bytes of a file.
For a problem more specific to CakePHP, check to see that you don't have stray blank lines/whitespace at the start or end of your files (i.e. after your ?>
or before your <?php
).