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In this video, Bev Brown, the Director of Customer Success for IHT, demonstrates how to separate first and last names on an Excel sheet for a CSV file. She advises ensuring that the column next to the names is blank and suggests labeling the columns as "First" and "Last". By highlighting the column, going to the taskbar, and selecting text to columns, users can separate names using a space as the delimiter. By following these steps, users can easily separate first and last names into two columns for CSV templates.