Eron, it's amazing how many people think that by removing returns and tabs you can save this massive amount of filesize and load time. It's true, you do save some....but it has about as much effect as going to the bathroom in an Olympic Swimming Pool....that is, not much.
As a UI guy, I'm obsessed with correct indentation of my code on the backend. It makes it easier to catch problems and fix them quickly. To that end, in my latest job I've been mercilessly hacking away at ugly code one file at a time, manually formatting (adding breaks and tabs) as I go. It's not quick, and definitely not fun. But the finalized code looks great. It's worth it, I think.
Dreamweaver isn't a bad tool, but there's better ones out there that will help with this task. Personally, I really like NetBeans. It'll highlight start/end tags, draw tab "lines" and even auto tab if it can. Another good one is Rapid PHP, which does this neat "block tab" tool for similar lines of code like you mentioned above. If you're newer to HTML, both will auto-suggest and validate your code on the fly and show you what's wrong.
If you want to get really crazy, you can control the tabbing and breaks on outputted code. \t is a tab, \n is a line break. If you're doing work on dynamically created multi-level unordered lists such as a menu, it can really help.
Good luck, keep learning!