1.  Select the Visual Studio Tools->Options menu.
2.  Select the Text Editor tree node to expand the various file types.
3.  Select the language that you want to set brace formatting on (select All
languages or select the language you want to customize the settings for).
4.  Select the Tabs tree node for the selected language in step 3.
5.  Change Indenting setting to Smart.
6.  Set Tabs to the indenting level that you want (you can decide to have it
insert tabs or spaces.  I prefer spaces).
7.  Save settings.  That should be it.