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In this video tutorial (XOX Trick #519), the presenter explains the differences between the Excel functions REPLACE and SUBSTITUTE. To follow along, viewers can download a workbook by visiting the presenter's YouTube channel and college website. The REPLACE function takes a starting position and a specified number of characters to substitute a portion of a string, while SUBSTITUTE searches for specific text within a string and replaces it. The video demonstrates how to use both functions, starting with an example that transforms the word "rad" into "shred" using REPLACE and showcasing how to manipulate text with SUBSTITUTE effectively.