[oogabooga]

Good job! Just for your interest, here's how I would've done it.
(Actually, I probably would've used pointers instead of indices.)
The my_isspace function is similar to the built-in isspace function
(in header ctype.h) except it doesn't include '\v', '\r', or '\f',
which you don't seem to want (but you should check that out).

int my_isspace( char c )
{
    return( c == ' ' || c == '\t' || c == '\n' );
}

int cleanSpace( char *s )
{
    int i,           // general loop index
        first,       // index of first non-whitespace character
        last,        // index of last non-whitespace character
        found_space; // boolean: true if at least one whitespace was found

    // Find the first non-whitespace character.
    for( first = 0; s[first]; ++first )
        if( !my_isspace( s[first] ))
            break;

    // Find the last non-whitespace character.
    for( last = strlen(s) - 1; last > first; --last )
        if( !my_isspace( s[last] ))
            break;

    // Move characters in string 's' between 'first' & 'last' to the
    // beginning of string 's', converting one or more whitespace
    // characters to a single space.
    for( i = 0, found_space = 0; first <= last; ++i, ++first )
    {
        // While whitespace is found, skip past it.
        while( my_isspace( s[first] ))
        {
            ++first;
            found_space = 1;
        }
        // If whitespace was found, write one space to 's'
        if( found_space )
        {
            s[i++] = ' ';
            found_space = 0;
        }
        // Copy next character
        s[i] = s[first];
    }
    s[i] = '\0'; // Terminate the string

    // Return the length of the modified string 's'.
    return i;
}