Indenting should be consistently 4 spaces. Don't use tabs AT ALL.
However, just over 360 of the files .html and .php files in the source tree have tabs in them, so is this a lost cause, or should someone like MartinD do a global replace tab -> 4 spaces and check it in?
Of course, no one here is checking in code with tabs, are we!?!
(I was writing a script that did things like php -l (syntax check) on every source file in the tree, and checked for trailing whitespace and other easy to check things relating to code quality that I could use to police the code in the OU source repository. However, I have just commented out the tabs in files test because it was finding too many bad files to be useful.)