It is very simple and easy to create a one-level list in
Word 2007. Word 2007 automatically creates a list as you
type asterisk or number 1 in your document. You can
choose from the different options in the Bullets or
Numbering lists in the Paragraph group in the Home tab.
Sometimes you need to create a multi-level bulleted or numbered list in
Word 2007. You need to give sub-categories in the document. You can
turn a one-level list into a multi-level list in Word 2007. You can
create a multilevel bulleted or numbered list in Word 2007 to make lists
within a list in the same document.
Turn an existing one-level list into a multilevel list
in Word 2007 by doing the following:
Click on the item
that you wish to shift to a different level.
In the Paragraph group on the Home tab, click the arrow next to any one
of the bullets or numbering style.

Click on Change
List Level, and then click on the option that you like.

You
can apply a gallery style to an existing multilevel list in Word 2007 by
doing the following:
Click on an item
in the list.
In the Paragraph
group on the Home tab, click on the arrow next to the multilevel list
which will provide you with many options.

Click on the
multilevel list style that you like.

The
whole multi-level list that you create can also be moved to the right or
left. You just have to click a bullet or number in the list, and drag it
to the position that you want. The complete list will move as you drag.
This will not change the numbering levels.