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In this video tutorial, viewers will learn how to properly set up business letters in Microsoft Word. The first step is to modify the top margin from 1 inch to 2 inches. This is done by navigating to Page Layout, selecting Margins, and then choosing Custom Margins at the bottom. Users can easily type "2" to change the top margin instead of using the arrow keys, and then press OK. After adjusting the margin, the cursor will position correctly at the new margin. Following this, the tutorial will guide viewers on changing font style, size, and spacing options to enhance the letter’s presentation.