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To use tool palettes in the tutorial, type "TP" and press ENTER, then select "Annotation." Choose between two types of arrows: Imperium and Material Jews, based on your requirements. After selecting Imperium, click OK and place the arrow at your desired point. You can adjust its length and angle by clicking on it. To explore more arrow options, select different arrow types and modify their properties, such as reversing them, changing length, and adjusting angles. The tutorial demonstrates various styles like Double, Fancy, Flex, and Drill, emphasizing customization of size, length, and angle for each arrow type.