The One With The Apothecary Table - S6-E11
Audio problem: When Phoebe puts her feet up on Ross' apothecary table, Ross asks her not to put her feet up on his "new...old sheet." During the pause right after he says "new," there's a cut to a different angle and you can see his mouth form the words "old sheet." Then it cuts to a different angle and we actually see and hear Ross say "old sheet." (00:12:05)
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.