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In this tutorial, viewers will learn how to properly set up business letters in Microsoft Word. The first step is adjusting the top margin from 1 inch to 2 inches. This is done by navigating to Page Layout, selecting Margins, and choosing Custom Margins to input the new measurement. After this adjustment, the cursor will move down, indicating the change has been applied. The next step involves modifying the font style, size, and spacing options, which should be done before any text is entered.