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In this video tutorial, viewers learn how to set up business letters in Microsoft Word. The first step involves adjusting the top margin from 1 inch to 2 inches. This is done by accessing the Page Layout tab, selecting Margins, and then choosing Custom Margins, where the top margin can be changed to 2 inches more efficiently by typing it in. After confirming the change, the cursor position is adjusted accordingly. The tutorial also indicates that the next steps will include modifying the font style, size, and spacing options, although details on those changes are not provided in the excerpt.