I discovered this novelty "yarn" on a sample scarf at my local yarn store and picked up a few skeins to make a scarf for my cousin for her Christmas birthday. It's Online Linie 194 Solo yarn in color #11 (red/orange) and comes wound in a tight ball, so you have to separate the yarn and flatten it out before knitting with it. The yarn took a little bit of time to get used to working with and kept twisting around as I worked with it, but other than that this was a quick knit with great results.
I used three skeins of yarn and size 8 needles in a garter stitch pattern with 8 stitches on each row. The scarf is about 50" long, but is very stretchy.
The other gift I found for my cousin was this super cute journal that reminds me of the monster book Hagrid assigned for the Care of Magical Creatures in Harry Potter. Kari loves Harry Potter and writing in journals, so I thought it would be a perfect fit.