Confused over tinyMCE and WYSIWYG

I’m migrating from 2.3 on one box to 2.6.3 on another system. I was using TinyMCE 0.5, which worked pretty well. Unfortunately, in the course of migrating, I upgrading WordPress, so I no longer have the old setup running – thus I can’t do an exact compare. But hopefully the problem is just a configuration issue.

With the old setup, I could select a bullet format, then enter text. And when I went to the next line, I could use Tab to get further levels of bullets with different characters.

With the next setup, I can get the first level of bullet, but if I enter Tab the cursor goes to a different window instead of indenting.

Is anyone else seeing this problem? Does anyone have a suggestion to fix it?

Thanks