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To use the tool palettes in the tutorial, type "TP" and press ENTER. Click on "annotation" to access arrow types, choosing between imperial and material as required. After selecting an arrow, click "OK" and position it where desired. You can adjust its length and angle by clicking on it. The tutorial demonstrates various arrow types: standard arrows can be reversed and resized; double arrows allow for angle and length adjustments; fancy arrows feature customizable length and angle; flex arrows let you increase size and length; drill arrows also allow for length expansion. More options for adding arrows can be explored further in the tutorial.