From:http://www.ehow.com/how_7226500_shift-won_t-work-word-2007.html
Instructions
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Launch Microsoft Word 2007.
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Click the "Office" button in the top left corner of your screen.
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Select the "Word Options" button at the bottom of the window.
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Highlight the "Proofing" option in the column on the left side of the window.
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Click the "AutoCorrect Options" button in the "AutoCorrect Options" section.
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Select the "AutoFormat As You Type" tab.
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Click the "Set Left- And First-Indent With Tabs And Backspaces" checkbox, which can be found in the "Automatically As You Type" section.
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Click the "OK" button to save your changes.
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Tips & Warnings
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Use the "Word Options" button to set other preferences for your document, such as display and AutoSave settings.
Read more: The Shift & Tab Won't Work in Word 2007 | eHow.com http://www.ehow.com/how_7226500_shift-won_t-work-word-2007.html#ixzz2LxuvDujE