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To modify symbols in Illustrator, open the symbols panel and define the object as a symbol. Once defined, you can make modifications such as transformations, copying, and adding effects like drop shadows. There are multiple ways to define a symbol, including using the new symbol icon, options menu, or dragging the object into the symbols panel. Remember to ensure that the type is set as a movie clip. Once defined, the symbol becomes an instance that can be further manipulated.