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by Oliver
ANSWER:
It's no secret that creating numbering streams with Microsoft Word leaves much to be desired. I usually recommend using fields. Unlike autonumbering, they are stable...I don't have issues with fields having a mind of their own, and changing my numbering without my permission!
But since you already tried fields, let's see if we can use autonumbering to accomplish the formatting you want.
Experiment on a sample document first!

Now that that the dialog box is open, you can set up your specially formatted numbering by following these steps:

This will format the list with the correct numbering, but you still need to tell Word what to do when you skip to a new section and want to continue the sequence.
To continue numbering from the previous section, follow these steps:
The next issue is starting the new chapter. If you are not using a Master document and sub-documents for each chapter, the easiest way to start the new number sequence (2-001) is to repeat the process.
Microsoft Word is not my software of choice for creating long, complex documents. Personally, I prefer using Adobe FrameMaker. If you write long documents very often, this software will save you a lot of frustration.
I've not read this book (it's on my Wish List), but you may want to pick up a copy of Formatting Legal Documents With Microsoft Office Word 2007, by Jan Berinstein. It has good reviews on Amazon, so if you do try it out, feel free to come back and let others know what you think about the book.