I have an existing outline originally created with no numbering and have
decided I would like to display outline numbers.

heading1
text, text
heading 2
text
heading 3
heading 3
heading1

I would like to transform this into:
1) heading1
text, text
1.1) heading 2
text
1.1.1) heading 3
1.1.2) heading 3
2) heading1

Unfortunately, clicking on the options that used to work easily in Word 2003
now result in numbering all of the above items sequentially, not multi-level
at all.

1) heading1
2) text, text
3)heading 2
4)text
5)heading 3
6)heading 3
7)heading1

Some of the comments on this thread talk about linking things and it sounds
like a computer programming project.  There are already two built-in options
that are supposed to do what I am asking for.  I really don't want to mess
around with linking this and programming that.  Is there any simple (ie. one
or two click) way to get a multi-level list?

If there isn't any simple way to do it, is there any way to save a
functional multi-level list so I only have to screw around with the
complicated stuff once?  Better, has anyone else programmed one that I can
just copy from some kind of a template file?