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In this video tutorial, Gustavo from Color Copies USA explains how to design a 4x8 foot banner in Photoshop. He starts by guiding users on the initial settings, including how to open Photoshop and select "New" to create a file. He instructs to input dimensions of 96 by 48 inches with a resolution of 143 pixels per inch, resulting in a clean canvas for the design. After completing the design, he demonstrates how to save the file by choosing "File" and then "Save," selecting the Photoshop PDF format to save the document. This walkthrough is aimed at helping users understand the necessary settings for effective banner design.