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In this tutorial, MD demonstrates how to insert a text box in Microsoft Word. To start, click in the document where you want to place the text box. Next, go to the "Insert" tab located at the top of the application, which is the third tab from the left. Click on "Text Box," where you can choose from various text box options. MD recommends selecting a simple text box, as it is the easiest and most commonly used. Once selected, you can drag the text box around the document and adjust it so that the text wraps around it, allowing for easy modifications.