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This video tutorial demonstrates how to create a linked table of contents in Microsoft Word. By adding links to different sections, readers can easily navigate through the document. This feature is particularly useful when updating books for platforms like Smashwords. To create a linked table of contents, users should first navigate to the desired chapter, highlight the title, and use the "control find" function on the keyboard to bring up the navigation. This process can be sped up by using a few tricks, making it a simple and efficient task.