I'm sorry but this is such a big topic and with all the variables involved it is going to be very difficult to try to give you the answer that you're seeking.
MS Word is available in many different versions dating back to pre-Windows days. It seems that every version has its own "quirks". To answer, we would need the version of Office that you're using. I see that you noted that you're using Word 2003. What Service Pack number? You find that information in Word--> Help--> About Word... If it isn't Service Pack 2 or higher, I suggest you click on MS Word Help--> Check for updates and download the service packs.
And also...it is possible that you're are using the correct procedure, but it doesn't work because your MS Word installation is damaged. If that turns out to be the case, there is a "Repair" tool available for the MS Office installation. Post again if you need the repair procedure.
The tool is available in the Control Panel--> Add-Remove Program--> MS Office.
Here is a stab at providing something that may be helpful for you.
One simple method for a complicated group of tabbed items is type them all in with just
ONE tab in between the entry. Then when you are done entering text, highlight it and choose Table--> Convert--> Text to Table
If you like, you can skip the single tab and put in whatever character that you want use to set the columns.
See this picture for an example. In the first paragraph, I didn't set any tabs. I just highlighted the paragraph and in Tables-->Convert--> Text to Tables, set the break as the period mark. It set the columns. Then if I wanted to, I could set the table Auto-format to "None" so that the column/row lines don't show.
This method will make a document appear to have tabs even though it doesn't. If your end product is to be printed out, it would work fine. If you needed to send the document on to others, but not for them to edit, you could print to a .PDF format and they would see what appears to be tabs, but they could not easily move or edit them. (Note: Print to .PDF does not mean to print out on paper, but rather to save the documents in the .PDF format). It would open in Adobe Reader which is a free download if you don't have it.
See this picture for an example showing the use of the pdf995 .PDF printer.
Click here to see the whole .PDF document.
To make this one, in the Word file, I used the ~ character placed in after the word "fox". I used the Edit--> Find--> Replace tool to put the character in. Then once the table had been built, I again used the the Edit--> Find--> Replace tool to remove the ~ character. Download the shareware program PDF995 from
this page. In an effort to make this easier to follow, I will number each line that represents a continuing step.
1. When you work with tabs I suggest you show the ruler. Choose View and make sure there's a check-mark next to Ruler.
2. You'll see the little icons in the ruler when you click in a line of text. The default tabs are the little vertical dashes that appear in the gray area below the numbers on the ruler (at .5 inch increments). If you click in the ruler, you set a tab. Example: A left tab looks like a little "L" in the white area.
3 To remove a tab you set, you just click and drag it off the ruler.
4. You can also set tabs more precisely and/or change the default tab settings by choosing Format--> Tabs.
Note that the tabs affect only the paragraph you are in, so if you want to change the tabs for an entire document, you need to choose Edit--> Select All to select the entire document first. If you use Word's styles, you can set tabs for all paragraphs using a particular style as well.
5. Indents and hanging indents are modified with the little triangles on the left-hand side of the ruler. If you want to create an indent, you drag the top upside-down triangle to the right. To create a hanging indent you drag the bottom triangle. Remember that you need to note where your cursor is...the change will only affect the paragraph you are in unless you highlight the other text you want changed.
6. If you are doing something complicated with tabs it can help to "show tabs." Choose Tools--> Options and click the View tab. Place a check-mark next to Tab Characters in the non-printing characters section. Then you'll see little arrows that indicate where you have a tab.
I would suggest that you figure out one method and then stick with that. Don't try to learn all the possible methods.