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In this video tutorial, viewers will learn how to properly set up business letters in Microsoft Word. The first step involves adjusting the top margin from 1 inch to 2 inches. To do this, users should go to the page layout, choose margins, then select custom margins to change the top margin to 2 inches. After confirming the changes, the cursor will shift down to reflect the new margin. The tutorial also emphasizes the need to modify font style, size, and spacing options before proceeding with the letter. Further instructions on these additional formatting changes will follow.