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In this video tutorial, the presenter demonstrates how to create a linked table of contents within Microsoft Word. The purpose of this is to update a book for Smashwords, where they require users to add navigations. By clicking on linked sections, the user can easily navigate between different chapters. The process is not difficult, and the presenter provides helpful tips to speed it up, such as using the "control find" function. The key steps involve going to the desired chapter, highlighting the title, and using the top ribbon options for navigation.