Inconsistent if(and(or results, HELP!!

Hi everyone,

I've been working on this for 3 hours and I can't seem to figure it out. I have attached a sample template for your review. here's the problem:

Column B: cells are either H, M, L (please note, there is space in front of each letter)
Column C: cells are either H, M, L (please note, there are no spaces in front of each letter)
Column D: I want a Yes answer if Column B shows an H (with a space in front) and Column C shows an M, OR, Column B shows an H (with a space in front) and Column C shows an L.

I have the following formula:

=IF(OR(AND(B2=" H",C2="M"),OR(B2=" H",C2="L")),"Yes","No")

Here's the irritating thing: This formula works perfect for the first instances of H (with a space in front) and M, BUT NO OTHER INSTANCES OF IT!! H (with a space in front) and L works fine.

HELP GURUS!!

Thanks!