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To modify symbols in Illustrator, first ensure that the symbols panel is open. Define the object as a symbol and then make modifications such as transformations or adding drop shadows. There are multiple ways to define an object as a symbol, such as using the new symbol icon, options menu, or pressing F8. Make sure the type is set as a movie clip. The symbol lives in the symbols panel as an instance, allowing for easy manipulation. Use the bounding box to drag and make changes to the symbol.