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Curtis from the Writing Center explains how to format an APA style reference list in Microsoft Word. Key points include starting the reference list on a new page, continuing the page number sequence from the body, and adjusting paragraph settings. To format, users should select the line and paragraph spacing options from the home tab, and in the indentation section, choose 'hanging' from the special menu. This formatting results in only the first line of each reference being flush with the left margin, while subsequent lines are indented, following the correct APA format for reference entries.