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In this Tiny Technical Tutorial, the host demonstrates how to compress images in Microsoft Word. The video starts with an example document containing text and photos. With a size of 2.8 megabytes, the host explains the importance of image compression to reduce file size, especially for large documents. To compress images, the viewer is guided to select an image, go to picture format, and choose compress pictures. This process helps in reducing the overall file size, making it more manageable for sharing via email or other means.