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In this video tutorial, viewers will learn to set up business letters in Microsoft Word. The first step is to adjust the top margin from 1 inch to 2 inches. This is done by going to Page Layout, selecting Margins, and then choosing Custom Margins to alter the top margin to 2 inches. After applying this change, the cursor will reposition accordingly. The tutorial then proceeds to discuss modifying the font style, size, and spacing options, preparing for further adjustments before typing the letter.