The One with Two Parts: Part 2 - S1-E17
Revealing mistake: In the scene where Phoebe goes to see Ursula at Riff's, Ursula goes to get Phoebe her birthday present. When she sits down, you can easily tell, by looking at all the people there, that the shot has been sped up. (00:15:10)
The One with Two Parts: Part 2 - S1-E17
Continuity mistake: At the end of the scene where Phoebe goes to speak to Ursula, Ursula has some food on her fork. In the next shot it is gone. (00:16:10)
The One with Two Parts: Part 2 - S1-E17
Continuity mistake: Just before Ross drops the cake, Rachel is pouring crisps into a bowl with her left hand holding the bottom of the bag. In the next shot, she is holding the bottom of the bag with her right hand. (00:05:50)
The One with Two Parts: Part 2 - S1-E17
Continuity mistake: When Ross and Jack are talking about becoming a father, Ross takes a drink out of a glass and puts it back down. The liquid doesn't move when put back down. (00:08:15)
The One with Two Parts: Part 2 - S1-E17
Continuity mistake: When Joey is talking to Ross and Chandler about missing Phoebe's birthday, Chandler has the newspaper in his hands. In the next shot, you can see that Chandler does not move at all, then in the next shot, the paper is on the table. (00:04:35)
The One with Two Parts: Part 2 - S1-E17
Continuity mistake: After Ross drops the cake, when everyone gathers around the table, there is a shot of Monica with no one behind her. In the next shot, Phoebe has appeared next to the lamp behind Monica from nowhere. (00:06:30)
The One with Two Parts: Part 2 - S1-E17
Revealing mistake: When the scene cuts from the apartment to Riff's, a man on the other side of the street walks past the Riff's sign and the sign is still visible through him, revealing it is just animated.
The One with Two Parts: Part 2 - S1-E17
Other mistake: Rachel is limping in the hospital for the first time. When she gets back home, she walks perfectly fine. Then in the hospital, she starts to limp again.
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.