You can use it like so:
Serial.print("word1 \t");
Serial.print("word2 \t");
Make sure you add that space, that will work for the space, or you can add another line, just for that space:
Serial.print("word1");
Serial.print(" ");
Serial.print("word2");
If you use Serial.print alot, you should look into the Streaming library, it's mighty fancy! lol can turn the above, into pretty much:
Serial << "word1" << " " << "\t" << "word2" << " " <<"\t" << "word3" << endl;
or isntead of endl, original Serial.println();
or of course:
Serial << "word1 \t" << "word2 \t" << "word3 \t" << endl;
And the awesome thing about it.. it adds 0 bytes on top of your sketch, it just adds a variation of the "print" library, for Serial.print etc it's awesome.
Here's the link, and more examples:
http://arduiniana.org/2009/04/new-streaming-library/