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In this video tutorial, viewers learn how to set up business letters using Microsoft Word. The first step is to adjust the top margin from the default 1 inch to 2 inches. To do this, go to "Page Layout," select "Margins," and then choose "Custom Margins." Enter "2" for the top margin for quicker adjustments. After that, the video intends to explain how to change the font style, size, and spacing options, ensuring a professional appearance for the business letter.