Word 2010--List number item 1 changes indent

Using "List Number 3" style, the first item in the list indents to 0,
tab .25, but the values I have assigned are indent 1.5, tab .5. The
remaining items in the list (2 & on) are indented as I specified. I do
not have "Automatically update" checked. Restart numbering has no
effect.

In another instance, I had to merge all steps into a single paragraph
and then re-enter paragraph breaks to get the steps to number
correctly.

I have a number of step-wise procedures, so I don't want to manually
correct the indentation on each first step, which is what I've been
doing so far.

Suggestions?

cal