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Kevin demonstrates how to create a fillable form in Microsoft Word, allowing users to input information without altering the form's structure. Various form elements like check boxes, text fields, and drop-down lists can be used. Once completed, the form can be emailed, printed, or linked to a database. This feature resembles Adobe PDF forms, with sample files provided for reference. To start, a Word document must be selected and transformed into a form, as shown with an order form for the Kevin Cookie Company.