Basic question about numbered lists

[jthomas666]

I've got a multi-level list set up to reformat a user manual. Here's what's happening:

1. I select a new set of instructions.
2. I apply the number style. The numbered paragraph style has a .25" indent.
3. The entire list is formatted correctly; the numbering continues from the previous list.
4. I right click on the first step and select Restart at 1.
5. The numbers are updated, but the first item is shifted over to the left margin. I have to manually move it back over.

The interesting thing is that in the Style pane, the paragraph shows as being in the correct style; there are no other styles on the paragraph that might cause the change.

What is causing this?