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In this video tutorial, viewers will learn how to set up business letters in Microsoft Word. First, it's essential to adjust the top margin from 1 inch to 2 inches. This is done by going to the page layout, selecting margins, and clicking on custom margins to input "2" for the top margin. After pressing OK, the cursor will move down, indicating the new margin setup. Next, the tutorial will guide users on changing font style, size, and spacing options. This foundational setup is crucial for creating professional business letters.