Hi Scott

The results from using the Numbering button are unpredictable, at best.

The best solution is to use the built-in List Number styles. Click on
the Style box on the toolbar and choose List Number.

If you don't like the default indents you can modify the style. But, you
*must* change the indents as follows. Format > Style > Modify (or in
2002 or 2003, Format > Styles and Formatting. Right-click the style name
and choose Modify). In the Modify Style dialog, click Format then
Numbering. You must change the indents in the Numbering section, not the
Paragraph section.

Hope this helps.

Shauna Kelly.  Microsoft MVP.
http://www.shaunakelly.com/word
Melbourne, Australia