Not sure I'm doing exactly as you had done.

If a New file isn't saved first it behaves differently than when saved, and
you didn't say which language scoping the editor is set to. Mines set to
POV-Ray and to follow that. Also, the Edit menu Constrain Caret to Text
matters. What I noticed in checking on this though is that the Caret didn't
jump to the same character position on line 3. If the file isn't saved,
meaning it doesn't comply with the settings yet I guess, the position shifts
left once for each line. If saved first then written, the position shifts
only at the 3rd line while staying aligned for the 1st and 2nd because of
the "ABCDEFG" already being aligned.
When looking at Show White Space the indentation appears to be correct.
--
Farewell,
Bob

"Marc Champagne" <nos### [at] pleasecom> wrote in message
news:Xns### [at] 204213191226...
>
> To reproduce the glitch, make sure you have v3.5 and then
>
> 1) go into Editor--EditorPreferences--Language/Tabs and turn OFF
>    (uncheck) "Convert Tabs to spaces while typing"
>
> 2) Create a new file (File--NewFile)
>
> 3) On line 1, press your <TAB> key once and type ABCDEFG
>
> 4) On line 2, type ABCDEFG
>
> 5) On line 3, press your <TAB> key once and type ABCDEFG
>
> 6) Position your cursor in between C and D on line 1 and then play
>    with your up and down arrows, the cursor should not stay within
>    the same column when on line 2.

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