Standard formatting is primarily used when you are submitting the physical manuscript to agents and publishers. Always follow that agent or publisher's instructions TO THE LETTER, even if you don't agree with it, or don't understand it. They all have their reasons to ask for certain formatting.

In Word, you can set up a macro for this, as you can for any other sets of styles. I'll post instructions on creating this macro shortly.

But standard formatting usually means:

• one-inch margins,
  
• double spaced,
  
• in Times New Roman font
  
• left-justified text (not justified)no staples
  
• printed on only one side
  
• 8 1/2 X 11" quality bond paper
  
• 5 space indent at the beginning of each paragraph--use the tab key, and make sure it's set to 5.
  

Any specifics or alternatives, including the format of the cover page and the headers of the manuscript, will be given in the submission guidelines for authors on the website of the agent or publisher, or in Writer's Market, or wherever else you have found the information for submission.