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The video tutorial demonstrates how to alternate row colors in a table in VI publisher. By inserting a field in the first record of the table and adding specific code to the advanced properties, the colors can be changed. The function used returns the row number for each data row, ensuring that the colors change accordingly. To customize the colors, a hexadecimal color code can be substituted in the field properties. This allows for easy adjustment and previewing of the results in a PDF.