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In this video tutorial, viewers learn how to set up business letters in Microsoft Word. The first step is adjusting the top margin from 1 inch to 2 inches. This is done by navigating to the Page Layout tab, selecting Margins, and then Custom Margins. Users can enter '2' for the top margin directly for efficiency. After modifying the margin, it's noted that the cursor moves down accordingly. The next step involves changing font style, size, and spacing options, which will be covered further in the tutorial.
