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In this video tutorial, the presenter demonstrates how to create a modified block business letter using open punctuation, which omits the colon after the salutation and the comma after the complimentary close. This differs from mixed punctuation, which includes these elements. To format the letter, set a tab at 3.25 inches, the midpoint of the 6.5-inch typing line, for the date line and closing lines. You can set this up before starting or after finishing the letter in a blank document. The example letter shown is already typed and correctly formatted with appropriate spacing between sections.