Change "%20" in JavaScript to a html-friendly "space" character in a breadcrumbs script

I am using a script to create breadcrumbs on my website.  The code is posted below.  If one of the folders on the website has spaces, it displays the breadcrumb with the %20 instead an "html" space character, usually "nbsp;"

Can someone show me how to edit my script to do this?  By the way, I don't have great javascript skills.  This is a slightly modified script I found on the web.  Thanks.  

CODE:

function breadcrumbs(){
  sURL = new String;
  bits = new Object;
  var x = 0;
  var stop = 0;
  var output = "<a href=\"/\" class=\"headlinkText\">Home</a>  >  ";
  sURL = location.href;
  sURL = sURL.slice(8,sURL.length);
  chunkStart = sURL.indexOf("/");
  sURL = sURL.slice(chunkStart+1,sURL.length)
  while(!stop){
    chunkStart = sURL.indexOf("/");
    if (chunkStart != -1){
      bits[x] = sURL.slice(0,chunkStart)
      sURL = sURL.slice(chunkStart+1,sURL.length);
    }else{
      stop = 1;
    }
    x++;
  }
  for(var i in bits){
    output += "<a class=\"headlinkText\" href=\"";
    for(y=1;y<x-i;y++){
      output += "../";
    }
    output += bits[i] + "/\">" + bits[i] + "</a>  >  ";
  }
  document.write(output + "<span class=\"style2\">" + document.title + "</span>");
}