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In this video tutorial, the presenter demonstrates how to reduce the file size of a Microsoft Word document that contains a lot of pictures. They explain that if you are not concerned about image quality for purposes such as emailing or using the file online, you can lower the image quality settings to reduce the size. The default image size and quality setting is 220 ppi, but you can adjust it lower or higher depending on your needs. The presenter shows how to access these settings in Word under the file and options menu, and recommends using high fidelity settings for printing purposes.