space char shell script problem

[David Banning]

I am running into a problem with the space character in filenames.
For instance, If I want to run the script;

for x in `ls`
do
  echo $x
done

then filenames that have a space in them ie: "john smith.jpg"
are processed by my script as two names, "john" and "smith.jpg".

What is the best way to deal with this type of space problem in the shell?

I know that file names in quotes solves some problems but I can't tranfer
that to my script.