Please be more specific about what software you are using. Word 2000, 2003, 2007, etc?
2. Bullets and Numbering...
3. List Styles (list styles allow 1.1, 1.1.1, etc.)
4. By default, the second available option of lists should be the one you want.
5. In your document, if the headings appear as the same number, right click the headings in the order they appear, and select Continue Numbering.
To separate chapters or headings, try using a Page Break, so that formatting numbers and bullets is easier.