Word's numbering can be finicky.
Once you've got a document hosed up, it can be almost impossible to
straighten it out. It sounds like yours is there.
Let's assume for a moment that your are starting a blank new document (maybe
you should try this, just to compare, and to see how it is SUPPOSED to work.)
The following describes how to set your Heading styles to do automatic
numbering. Once you see how it works, then you can start to customize the
styles, or customize the numbering.
Background: Styles can be paragraph styles, or character styles, or both (as
indicated by the icon next to the style name in the Styles pane; the
paragraph mark icon is a paragraph style). Stick with paragraph styles for
now.
Turn on the Styles Pane: Home ribbon-Styles Group, there is a little
launcher button on the same bar as the group name Styles. That button will
open a dialog that you can dock on the side of the screen, and KEEP it there.
Type a couple of one word paragraphs to simulate topic titles.
Click into the first paragraph. on the Styles Pane, click Heading 1. YOu
will see the paragraph change it's formatting.
Now apply Outline Numbering: Home tab - Paragraph group, there is a button
that if you hover over it is MultiLevel List. Hit the little arrow to drop
down your choices, and pick the one that shows Heading 1, Heading 2, etc.
Next go back and apply Heading 2 to the second paragraph. You should see it
immediately indent and get numbered subordinate to the heading 1 style.
Try this on several paragraphs with several Heading levels.
By customizing the Styles and the List, I've used this on dozens of
documents very successfully.
Keep in mind:
The styles in the pane have a drop down if you hover over the name. That
drop down makes in MUCH easier to customize the styles. Just take the time to
consider what each choice means.
The button for Multilevel list, when you hit the litttle dropdown arrow on
it, you get a menu of prebuilt choices. (i.e., the gallery, as you do with
most features of 2007.) At the bottom of this menu there is a choice to
customize or build your own. After you get a feel for them, you might try
building one of your own.
Also keep in mind that the heading level styles do NOT have to be for titles
only. YOu can redefine a style to be paragraph text if you wish, at different
indent levels if you define them that way. Or, you can create your own custom
styles, but then you have to customize your Multilevel List to incorporate
your custom styles.
Good luck!