Rob

The problem is how you are inserting the new 1. paragraph and how cross-references work. This post should explain where you are going wrong.

When you insert a cross-ref to a paragraph number, Word sneakily bookmarks the source paragraph with a randomised name that starts with _Ref and finishes with a bunch of random numbers. This works fine if the bookmark remains wholly contained in that paragraph. BUT...

When you then put your cursor at the start of that paragraph and press Enter to insert a paragraph ABOVE that paragraph, AND the bookmark also starts at this location, the hidden bookmark now includes that new paragraph (and finishes where it used to). This means the cross-ref now points at the new para 1 numbering instead of the (now) para 2 that you expected.

To avoid this issue, get into the habit of NEVER inserting new paragraphs by putting your cursor at the start of paragraphs which may have a cross-reference pointing at it. Instead, put your cursor at the end of the paragraph above and press Enter there. That way the new paragraph is not included in the bookmark that the cross-ref is pointing at.

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Andrew Lockton
Chrysalis Design, Melbourne Australia