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In this video tutorial, the speaker demonstrates how to create a linked table of contents within Microsoft Word. They show how clicking on a linked section will take you to the corresponding chapter. The purpose of this demonstration is to update a book for Smashwords, which requires these navigations. The process is not difficult, and the speaker provides quick and helpful tricks to speed it up. They instruct to go to the desired chapter, use the "control find" function to locate it quickly, and highlight the heading to create the link.