Office button - Word Options - Proofing tab - AutoCorrect Options -
AutoFormat as you type tab. Make sure the 2nd to last option (Set left- and
first-indent with tabs and backspaces) is ticked.
Also, if there is no text on a given line, I find that pressing Tab just
inserts a tab. If there is text, then Tab sets the indent.

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Herb Tyson MS MVP
Author of the Word 2007 Bible
Blog: http://word2007bible.herbtyson.com
Web: http://www.herbtyson.com
> you used to be able to use shift and tab to undo tabs, this does not seem
> to
> work in word 2007 is there an alternative keyboard shortcut