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It can still be accomplished but in a different way. We changed the style system on the iPad to try and address issues with how it works currently in OmniOutliner 3.

A quick run through of how to do this:
- Create styles named something like "Level 1" "Level 2", can be whatever you want as long as you know which is which.
- At the top of the Styles tab in the config popover, tap the "Whole Document" Style
- Scroll down the popover and tap on "Top-level rows"
- Tap on your "Level 1" style to select it. This applies the "Level 1" style to all the level 1 rows (top-level).
- Now go back and modify the "Level 1" style
- Scroll down the popover and tap on "Children's style"
- Tap on your "Level 2" style to select it. This makes the any row that has the "Level 1" style applied to it apply the "Level 2" style to it's children.
- Edit the rest of your level styles to set the "Children's style" to the next level row.

The "Level Styles" sample document has these configured through level 4. You can always duplicate that document, clear out the contents and use it. Then all you need to do is modify the existing level styles to be what you want.

Hopefully that helps. If you have anymore questions just let me know!