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In this tutorial, Gary from MacMost.com explains how to create a background image for documents in Pages version 5. He starts with a sample document and demonstrates how to add a background image behind the text. To do this, he drags and drops the image into the document and then goes to the Arrange menu, selecting Section Masters to move the image to the background. After placing it in the background, Gary scales it up and adjusts its position to cover the entire page, confirming that it appears on subsequent pages as well. The tutorial emphasizes the steps to ensure the background image will be set for all pages in the document.