Continuity mistake: The number of the flats near the start of the first series was 4 and 5. After a few shows they changed to 19 and 20. [The producers realised that the numbers 4 and 5 were for apartments on the lower floors and had shown Monica's apartment to be much higher up so they changed the numbers - it's still a mistake but there's the reason.]
Trivia: In one of the intros used in season 1 on TV you can see a clip of Ross, Chandler and Joey dancing in Ross' apartment. That clip is not in any aired episode. It's in the extended version of "The One with All the Poker".
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.