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Originally Posted by BurningHives
Thank you for your help.

It doesn't appear that I can sequentially number a particular level from Chapter 1 throughout Chapter, say 14. The numbering starts over at "1" each time the particular level is invoked anew.

Ah well... I was hoping for a Word-killer. :(
Hi, BurningHives,
I think what you need to do is turn on the row handles ... open the drawer, select the "Level 1 rows" go to the inspector and in the Row:Advanced pane, click in the "Always" rather than "Under mouse"; do that for level 2 rows and level 3 rows. That will show you the hide/disclose triangles.
You will see is that level 3 is currently set to be the level of the text itself ... as it were level 1 is the title, 2 is chapter, 3 is text. What you need to do is change that so that level 3 becomes a section, then you can create a child level by the technique that Derek explained which will be level 4, which you can either use for the text, or for subsection, in which case create a level 5 for your text.
You reset the row parameters, whether they have numbers or not--currently level 3 has no numbers--and if so the type of number with the Row Inspector, and the font and style with the Appearance Inspector.
When you've got it all set the way you want, save it as a template, so you can call it up again and again.
For your numbering problem, you have to be at the right level. For this purpose, having the hide/disclose triangles visible makes it easier to see what you're doing. If you are in a level 2 row--the chapter level--click the triangle to hide the child rows. If you now hit return, a new level 2 row will open with the next number in the sequence to the one you were in when you created it. It does work on my machine, I promise you! I've just tried it using the template.
You can do the same by just hitting return when you're in a text row and then using Shift-Tab to move the new row up one--or however many levels in the hierarchy you need--and the numbering works fine for me.
HTH
Mark :)