First off, if you're new to electric guitars, here are some handy dandy definitions for you before you watch this video:
1. Action is how your frets feel when you press down on them with your finger. Finely tuned and taut strings will not be too sharp or too flat when played.
2. Intonation is the ability of each string to play accurately in tune. The intonation is what you adjust when you say you're going to "tune" your guitar.
Adjusting the action and intonation on your electric guitar affects your instrument's sound. The exercises in this video lesson show you how to adjust for sharp or flat frets the tips ensure your adjustment is working.