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In this video tutorial, viewers learn how to set up business letters in Microsoft Word. The first step involves adjusting the top margin from 1 inch to 2 inches. This is done by navigating to the page layout, selecting margins, and then choosing custom margins to input the new top margin measurement. After pressing OK, the cursor will reflect the change. The next step is to modify the font style, size, and spacing options, which the tutorial will cover in more detail.