This looks like the problem to me as well. (I'm a little late getting my answer in.) This version of your original code works for me:

#!/usr/bin/perl
use strict;
my %hash = ( ' Key1', ' Value1');
sub doStringTidy {
  my $string=shift;
  my $string =lc($string);
  $string=~s/^\s+//;
  $string=~s/\s+$//;
  return $string;
}
sub doHashTidy {
  my $hash=shift;
  foreach my $k (keys %{$hash}) {
    my $kv=doStringTidy($k);
    my $vv=doStringTidy($hash->{$k});
    delete $hash->{$k};
    $hash->{$kv} = $vv;
  }
}
doHashTidy(\%hash);
foreach my $key ( keys %hash )
{
  print "key:$key, value:$hash{$key}\n";
}
[download]

which provides the following output:

key:key1, value:value1
[download]

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