1 - I set up the numbered headings according to Shauna's article (How to create numbered headings or outline numbering in Word 2007 and Word 2010). I'm using Word 2007.

2 - I just tried turning off the numbering by right-clicking the heading and selecting None in the Numbering Library pane (I tried doing the same thing by modifying the Heading 1 style). This gets rid of the number on the Level 1 heading AND leaves the numbering scheme intact on the subsequent headings...EXCEPT that the numbering doesn't change to "2.1" after the second HEADING 1.

HEADING 1
1.1 Heading 2
1.1.1 Heading 3
HEADING 1
1.1 Heading 2 (should be 2.1)
1.1.1 Heading 3 (should be 2.1.1)

In the Multilevel List settings, Level 2 definitely has Restart list after set to Level 1. So for some reason, when I take the numbering off the Heading 1 style, the list stops recognizing it as a Level 1 heading. (But the TOC still sees it as a Level 1 heading.)

confused...