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In this Microsoft Word tutorial, the instructor demonstrates how to create a letterhead in the headers and footers of a document. Placing graphics in the headers and footers will display them on every page. However, a trick is shown where graphics placed outside the header/footer area will still remain in the headers and footers. The process involves double-clicking at the top of the page to access the headers and footers, then using the insert tab to add shapes. These shapes will appear to be outside the headers and footers but will actually be included in them.