Wonder if 'Identation' is spelled correct

Dreamweaver 4 has been really pissing me off lately regarding the identation displayed in Dreamweaver's Source View and displayed in Internet Explorer's Source View which results in opening the source in Notepad most of the time.

Example site: http://jmulder.mm2c.com

Check the source and it seems to display most of the with 6 spaces for one tab. I set Dreamweaver to:

Use: Spaces
Indent: 1 (measured in spaces)
Tab: 2 (measured in character spaces)
Linebreaks: LF(UNIX)

The source looks completely nice and purdy in Dreamweaver's Source View. I tried every possible combination I can think off .. any tips to fix this? (besides ditching DW )

Thanks in advance,