Hello Zedd.
This can be tricky to bug, but I think I found some of the culprits. You are completely correct that it is a backspace that is found in the response. i found that it is specifically in some of the labels that are coming back. For example, the following label name coming back has a backspace in it before the word Tina:
<ns2:accountLabels><ns2:id>4933659</ns2:id><ns2:name> Tina</ns2:name></ns2:accountLabels>
When the parsing is happening you should be getting back errors as to specifically where in the response the parsing error is happening. You can then use that information to fix the labels through the UI. I usually take the entire SOAP response and put it into an editor that can see all characters when trying to debug an issue like this.
Cheers,
Nadine, AdWords API Team