Thanks for sending the print. I am going to suggest that the reason you had difficulty is that the file is very big--it's over almost 7 MB for just a single page. This is because it's an .rtf and those tend to be quite large. I suggest that you scan and save the image into .jpg or .pdf. Those will be much smaller and easier to send. I say this because I think I MIGHT need to see additional page. The print layout here is complex and one page only lets me see a small part of it. I'll try with what we have.
Paragarphs are either indented or not regardless of where they are placed on the print page If all the text is at the same left margin, it is a blocked (NOT INDENTED) paragraph. If the first line of the paragraph is indented relative to the rest of the paragraph, it is an indented paragraph. So, there is only one indented paragraph on this page and that is the one starting The injury. I can't tell about the paragraph at the top of the page because I can't see how it begins. I'll assume it is blocked.
All of the remaining paragraphs on this page are blocked. You will have to read your text carefully over many pages to see the pattern in print to determine which is the displayed material. Notice that the rule you cited defines displayed material as that which is set off from the text by a CHANGE IN MARGIN. Those paragraphs are still considered blocked and NOT indented. The display is shown by a blank line before and after.
And NEVER use two blank lines for this purpose. There is no provision for it in the rule and it simply creates a chasm for the reader to get past without imparting any additional information about the text. A single blank line indicates the displayed material and the resumption of regular text. It also indicates the change in format (1-3) that I assume is being used for the numbered items.
Here's a problem. There is a blank line between blocked paragraphs because that's the only way to tell where a pargraph ends and a new one begins. There is a blank line between regular text and displayed material. This means that if displayed material is also blocked, it is not obvious, except by context, in braille. There is really no way to tell in braille except by the content of the material itself. Usually, in print, the reader can tell by visual appearance of the various print indentions. Not always true in braille, at least not currently.
PREVIEW. The new Formats rules, just approved by BANA address this issue. But since those new rules haven't been published yet, and BANA has not announced an implementation date, we use the current rules now.