Visual Studio 2012's Intellisense no longer accepting suggestion on spacebar press

I've been using Visual Studio 2005, 2008, 2010 on multiple PC's, installed there by other person or by me. Always intellisense suggestion on it worked like this: I start typing, window pops with suggestions, with current suggestion highlighted, and I can press spacebar to accept the suggestion. However, since i installed Visual Studio 2012 on my current PC (it is a relatively fresh Win7 64x install, it had VS2010 installed before) it works differently. Now, it no longer highlights the suggestion. I have to use CTRL+ENTER to accept suggestion or DOWN to make it selected so that spacebar will accept it. This is really uncomfortable to use. I tried resetting my settings (Tools -> Import and Export Settings -> Reset Settings) but it didnt help. It tried looking for help but noone knows or has this problem it seems. What am I doing wrong? How to revert to old behavior?