I normally recommend vim, but it has quite a large learning curve. I think Notepad++ has decent syntax highlighting and code continuation, but I don't remember for certain (I use Unix).

Notepad can indent, but not automatically. Typical indenting is one tab per block. However, the standard indenting if possible in your editor is set your tab to four spaces. Here's an article on how to set Notepad++ to 4-space tabs.