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The video tutorial showcases a picture-in-picture setup between a laptop and a desktop computer's display using an AOC monitor model 2477 pwq connected via VGA cable. The desktop screen shares the display with the laptop, allowing for seamless transition of cursor movements and icon visibility. The tutorial demonstrates different picture-in-picture settings, including VIP, third picture-in-picture, and E I be setting. The options include via PP, b P, and off, with side-by-side display showing both screens simultaneously.