Physics
The February 2012 issue of Scientific American
has a cover article titled "Is Space Digital?".
The article discusses whether physical space
"is made of chunks. Blocks. Bits."
Maybe it is, maybe it isn't.
Geometry
The word "space" in pure mathematics
(as opposed to physics) applies to
a great variety of structures.
Some are continuous, some are not.
For some purely mathematical structures
that are not continuous, (i.e., are made of
"chunks, blocks, bits") see finitegeometry.org/sc —
in particular, the pages on Finite Geometry and Physical Space
and on Noncontinuous Groups.
The geometry of these structures may or may not eventually
be relevant to the "21st-century physics" discussed
in the February Scientific American.