Note that for Word 2007 (and later) you should change the indentation for numbered lists via the multilevel list dialog box, not via the Modify Style dialog box. Place the insertion point in the first list item (meaning the first Heading 1 paragraph of the document, in this case). On the Home tab, click Multilevel List | Define New Multilevel List. For assistance with the options in the dialog box, take a look at
http://www.shaunakelly.com/word/numb...g20072010.html.