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In this video tutorial, viewers will learn how to set up business letters using Microsoft Word. The first step is adjusting the top margin from 1 inch to 2 inches. This is done by navigating to the Page Layout menu, selecting Margins, and choosing Custom Margins at the bottom. Users should input '2' for the top margin and click OK. After changing the margin, the cursor will adjust down accordingly. The tutorial emphasizes the importance of formatting before typing the letter, including font style, size, and spacing options, though these specific changes are not detailed in the provided text.