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In this video tutorial, viewers will learn how to set up business letters in Microsoft Word. The initial step involves adjusting the top margin from 1 inch to 2 inches. This is done by navigating to the Page Layout tab, selecting Margins, and then choosing Custom Margins to input the desired measurement. After changing the top margin to 2 inches, viewers will see that the cursor has adjusted accordingly. The tutorial progresses by recommending changes to font style, size, and spacing options, laying the groundwork for formatting a professional business letter.