A hotfix is available for issues most commontly described as "I make changes in Design view but Source does not get updated" and "After certain actions designer inserts a lot of in the page".
https://connect.microsoft.com/VisualStudio/Downloads/DownloadDetails.aspx?DownloadID=17185&wa=wsignin1.0
Do not be surprised that update is named Office2007-xxxxx since designer is an Office 2007 component, similar to Expression Web and SharePoint Designer 2007.Additional information is available here:
http://blogs.msdn.com/webdevtools/archive/2009/03/23/hotfix-for-design-view-does-not-update-html-and-to-designer-inserts-a-lot-of-nbsp.aspx
Thanks
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