It's easier done than said:. Place your cursor at the beginning of your citation, and highlight it. Right click your mouse. Select Paragraph from the resulting pop up menu. Under Indentation, use the Special pull-down menu to select hanging. Use the By menu to select 0.5' For multiple Citations in a References, Works Cited or Bibliography Page. Once you've applied the hanging indent using the technique above, hit enter after your citation.
![Hanging Hanging](http://www2.eit.ac.nz/library/images/MAC%20Images/Mac%20Hanging%20Indent%201a.png)
Not sure what it is you trying for but it sounds like a hanging indent. Select the text you want to indent: Menu > View > Show Ruler. On the left hand side there is a down pointing trinagle which sets your left margin with a flat bar over which sets the first line indent.
If you are typing your citation it should keep the same formatting. If you are pasting in your citation, right click when you paste and select the paste as text option (looks like a A on clipboard) and Word will automatically apply all the formatting you've already done, including hanging indent, spacing, font, etc. Alternatively you could wait until all your citations are on your bib, highlight them all at once, then use the 5 steps as listed above.