Hi Gary Johnson, you wrote:

> 
> From ":help preserveindent":
> 
>     Normally the indent is replaced by a series of tabs followed by 
>     spaces as required (unless |'expandtab'| is enabled, in which 
>     case only spaces are used).
> 

I believe this sentence is about how VIM operates when 
preserveindent/copyindent is NOT set. You should also have quoted the next one:

Enabling this option means the indent will preserve as many existing characters 
as possible for indenting, and only add additional tabs or spaces as required.

-- 
Alexei Alexandrov

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