"Personal space" applies mainly to daily relationships with people to whom we have no close, intimate relastionships (immediate family, spouse, boy/girlfriend). My colleagues as work would stay out of my personal space, as I would theirs. It doesn't mean that we dislike each other. Likewise, if somebody I'd just met moved within half an arm's length of me, I'd start to feel uncomfortable. Close family or people with whom we are involved romantically can move in closer. And let's face it - if Westerners demanded personal space ALL the time, we wouldn't make any little Westerners. :-)

"Do Westerners emphasize their personal space?" It's pretty relative. However, I think your teacher may have misled you. Probably not his/her fault, but in my experience, "westerners" (whatever the hell that means) are fairly friendly. For the record, we Australians are pretty cuddly! ^^

Jason, 关于“隐私权”http://www.italki.com/notebook/entry/186115.htm说得有道理。