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In this video tutorial, viewers learn how to set up business letters using Microsoft Word. The first step is to adjust the top margin from 1 inch to 2 inches. This is done by navigating to the page layout, selecting margins, and choosing custom margins to input the new top margin measurement. After confirming the change, the upper margin is successfully set to 2 inches. The next step involves changing the font style, size, and adjusting spacing options, although specific instructions for these changes are not provided in the text segment.