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Nick Barber discusses formatting issues within Microsoft Word, specifically related to bullets. Common problems include misaligned text and reformatted bullets. To fix these issues, turn on rulers in Microsoft Word under the "View" tab. The rulers will display tab stops on the left. If you can't find it, search for your Word version in the "About Word" section. This tutorial provides a step-by-step guide on how to address formatting problems with bullets in Microsoft Word.