It seems that spaces matter in free format. For example, the following is an acceptable fixed-format file that works fine.
program spacing ii = 11 111 jj = 22 222 k k = ii + jj w r i t e(*,*) k k e n d
If this program is saved as spacing.f, it compiles and runs fine. If it is saved as spacing.f90, then ifort finds syntax errors on every line except the PROGRAM statement. So, free format is less free than fixed format in this regard. At least the spaces in "end if" and "end do" are still allowed and optional.
Can anyone confirm that not ignoring spaces in free-format files is the Fortran standard? Some searching hasn't turned up anything addressing spaces in free format.