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In this video tutorial, the creator demonstrates how to create a table of contents in a Word document. They start by adding random text using the rand() command and then proceed to add headings for the table of contents. They show how to assign styles to the headings to determine their levels in the table of contents. The tutorial includes examples of level 1, level 2, and level 3 headings to illustrate the process. Creating a table of contents simply involves assigning styles to the headings in the document.