updated to 2.7

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I updated to 2.7 and all seems ok, but every line in my code now has a warning saying PEP8: indentation contains tabs ... what does it mean? and why are the settings not exactly the same as before?
this is after doing code formatting ... should not have any warnings after formatting right?

The PEP 8 checker is a new feature in PyCharm 2.7. You can either change your code style settings to use spaces instead of tabs or turn off the PEP 8 inspection in Settings | Inspections.
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Dmitry Jemerov, Chief Technology Officer, JetBrains