Spaces around Em dash?

I agree it can be used to denote dramatic pause (and that there is no other punctuation that conveys this).
 
FWIW, em dashes and ellipses should be used sparingly, unless you want your readers to get distracted by your cool use of punctuation, so they get out of the story and find something better to do instead of finishing your story.
 
http://www.quickanddirtytips.com/education/grammar/ellipses?page=1

Now, on to the other use of ellipses that you frequently see in e-mail: the ellipsis that’s used to indicate a pause or a break in the writer's train of thought. Many people have written to me to say that they find this kind of use annoying, but a number of style guides say that ellipses can be used to indicate a pause or falter in dialog, the passage of time, an unfinished list, or that a speaker has trailed off in the middle of a sentence or left something unsaid (1, 2, 3, 4). For example, The Chicago Manual of Style states, “Ellipsis points suggest faltering or fragmented speech accompanied by confusion, insecurity, distress, or uncertainty.” The Manual contrasts ellipses with dashes, which it states should be reserved for more confident and decisive pauses.

So, it is allowable to use ellipses to indicate pauses or breaks in the writer's train of thought as you see so frequently done in e-mail, especially where a break is meant to feel uncertain. Nevertheless (and this is a BIG nevertheless) most people who use ellipses in e-mail overdo it—a lot.

(Though honestly, ellipses get used a lot for dramatic pauses too, and it wouldn't bother me.)
 
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