Beginner CS4 - bullets, hanging indents, second line probs

I've been wrestling with a simple problem and despite online instruction, can't get my bullets to line up correctly. I set up bullets with a left indent of .25", first line indent of -.25 in and a tab set at .125" to make the distance closer between bullets and text. But unless I use the default settings and eliminate my tab -- which creates a too big distance between bullet and text, the second line refuses to hang properly -- it's indenting more to the right than the first line.

I'm not a very experienced user, sorry to say, so thanks for any help.