A family of Microsoft word processing software products for creating web, email, and print documents.
sounds like the autocorrect "feature". Try looking in Tools menu / Autocorrect command / AutoCorrect dialog box / Autocorrect tab / there are a couple of capitalize options here
... /AutoFormat as you Type tab / maybe "Format beginning of list item like the one before it"?
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http://office.microsoft.com/en-us/outlook-help/learn-where-menu-and-toolbar-commands-are-in-office-2010-HA101794130.aspx - Silverlight applets Mapping 2003 to 2010 commands for all Office apps.
http://office.microsoft.com/en-us/training/HA102295841033.aspx - flash applets mapping Office 2003 menus to 2007 ribbon.