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In this tutorial, the instructor demonstrates how to create a modified block business letter using open punctuation, which omits the colon after the salutation and the comma after the complimentary close. The only difference from mixed punctuation, which includes these punctuation marks, is this omission. To format a business letter in modified block style, set a tab at 3.25 inches on the ruler, marking the midpoint of the six-and-a-half-inch typing line. Both the date and closing lines should align with this midpoint. The video shows how to format either before starting the letter or after typing it, using an already formatted example for reference.