In Word 2007, if you are going to create a new multilevel/outline numbered
list, do the following: Click the Home tab, click Multilevel List, and then
click Define New List Style. Type a name for your list style. Click the
Format button and then click Numbering to specify the desired numbering,
indentation, and associated paragraph style for each level of numbering. For
a description of the options in the dialog box, you may find
http://www.shaunakelly.com/word/numbering/OutlineNumbering.html useful. When
you are done, confirm by clicking OK.
Once created, a list style appears at Home tab | Multilevel List (under
"List Styles"). If you want to modify an existing list style, just
right-click its icon and choose Modify from the context menu.
You can use Home tab | Multilevel List to apply a list style to text, but if
you have associated paragraph styles to the numbering levels, it will be
easier to apply the paragraph style directly. Also, you can promote and
demote the numbering, for example by using the Tab and Shift+Tab keys.