Hanging Indent on Word:Mac 2008

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I need to create hanging indents for a bibliography. No instructions I've found work in my system: all lines move together to the tab set when I follow the hanging indent option under TOOLBAR-Format>Paragraph>Indents & Spacing >Indentation:Special string.

Help appreciated. This my first post to this site. Is there a better place for my situation?

Thanks.
 
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