Alrighty I started snooping around in the lands I hardly visit like Arctic Frost and I came across the Gift Exchange.

So I tried giving a few things. . . but I haven't got anything back and it won't let me give some things either.

Am I doing something wrong? Does it only work certain times?

My n00b is showing :-/

In the instructions it says:

As far as not giving things, I don't think it lets you give 'special' items, rarity 150 (things you might win in slots or random) and a few other things. If you click on the item and make sure its between rarity 1-99 it should accept all those.

EDIT: I just tested it out, trying several different items and it only accepted one. For all the rest it gave me a database error. So not really sure what's going on.

That's the same error I was getting. I noticed it said there was a banned item list but no indication on what items were banned.