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In this tutorial, Ella Lima demonstrates how to insert a letterhead in MS Word. Start by navigating to the Insert tab, then click on the Picture option to browse for your letterhead on your hard drive. After selecting the image and clicking insert, the letterhead will appear in your document but may not touch the borders. To adjust this, right-click on the picture and choose Size and Position. Set the height and width to 100% to fit the document. Next, go to the Text Wrapping tab and select "Behind Text." Finally, in the Position tab, align the image horizontally to the center relative to the page and adjust vertical alignment as needed.