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I'm using Word 2003 SP2.

I have text that I want to center with a format of xxx tab xxx. I
insert a center tab ( _|_ ) between them and the text segments jump
apart but by too much. So I adjusted the placement of the center
tab. As the tab approaches 1" from either direction, the space
between the segments shrinks to zero.

Also, the placement of the tab along the ruler doesn't correspond to
the space between the segments, 3" doesn't mean the segments are 3"
apart, etc.

What concept am I not understanding?