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In this video tutorial, viewers will learn how to set up business letters in Microsoft Word. The first step is to adjust the top margin from 1 inch to 2 inches. This is done by navigating to the page layout menu, selecting margins, and then choosing custom margins to input the new top margin. After pressing OK, the cursor will move down to reflect the change. The next step involves modifying the font style, size, and spacing options before proceeding with any further edits. The tutorial aims to ensure a professional format for business letters.