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In this video tutorial, viewers learn to properly set up business letters in Microsoft Word. The first step involves adjusting the top margin from 1 inch to 2 inches. This is done by accessing the Page Layout tab, clicking on Margins, and selecting Custom Margins. Here, the top margin is changed to 2 inches by typing the value directly. After this adjustment, the cursor position reflects the new margin. Following this, the tutorial indicates that changes to font style, size, and spacing options will also be covered, emphasizing the importance of these adjustments before typing the letter.
