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In this tutorial, Ella Lima demonstrates how to insert a letterhead in MS Word. To do this, go to the Insert tab, select Picture, and browse for your letterhead on your hard drive. Once inserted, adjust the size by right-clicking on the picture and selecting Size and Position. Set the height and width to 100% and choose the text wrapping option behind text. Finally, center the image horizontally and relative to the page vertically to ensure it fits correctly in the document.