jlong,
I've looked into this. I've fixed the problem where ViEmu would crash. This will be available in the next release of ViEmu (2.2.8, expected in the next few days, together with fixes for the % motion and for Resharper interaction issues).
But I can't make >> work correctly, there is some problem with the Lua language service that pack implements, which causes the call to
IVsTextManager.GetUserPreferences(0, 0, LANGPREFERENCES *lp, 0)
to return E_INVALIDARG, even if the lp array seems to be filled with correct values. This is the way I can access the user's preferences about tabs-vs-spaces and indent size.
I adscribe this to a bug in their language service, rather than in ViEmu, because this call has to be and has been rock-solid with all other language services for several years now. I can't pay attention to values in the array if the return value is E_INVALIDARG.
It's probably easy for them to reproduce the problem, by calling that function from somewhere and seeing where it gets in their language service (I'm not an expert in that area of VS).
Meanwhile, ViEmu will insert a hard TAB when trying to indent.
I've also added code so that ViEmu won't wait for Visual Assist on Lua files, probably the best thing to do as VA is unlikely to do anything on those files, and it may be the fix you are looking for.