The One Where Paul's The Man - S6-E22
Visible crew/equipment: In the scene where Rachel is trying to hide Ross from Paul, when he's about to go into Paul's bedroom after he says "Did you really hear a bear?", look at the window behind Rachel when the shot is on her. You can see a large light reflected in the glass and it moves slightly (not just in conjunction with the camera, it moves before the camera shifts).
Answer: Usually by the seventh night of Hanukkah you don't know what to get the other person, and you will probably resort to getting the other person something insignificant. Chandler is basically saying that the pen is a stupid gift.