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I just updated to the latest version (4.0.8 build 2) and every time code formatting happens (close '}', placing semi-colon, etc.) I get tabs inserted in front of the line or block I was just working on. It seems to insert the number of tabs that should be there, so it effectively doubles the indention of my code. I've tried changing to different formatting options for my C# files (Visual Studio, Mono, custom) and it happens under every scheme.
I think that the indentation may be set to 8 or something like that.
Look in the project options - not in the ide options.