A negative number in the text-indent attribute IS supported in mobi (or at least mobi's built by kindlegen), they just don't work in conjunction with the left-margin being greater than zero.
You can create a hanging indent by using "text-indent: -16px", but it will be left-aligned (no left margin).
You basically have to choose between a hanging indent or a left margin. To get both, you'd have resort to images of text or manually building your paragraphs with combinations of <br /> and (which might behave badly when users increase font-size).
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Originally Posted by virtual_ink
I'm using the recent 2011 $79 Kindle, not sure if earlier models will render differently. Touch wood, if it works accross the board, its so simple.
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I can verify that it works as far back as the Kindle 2.
