FatalT, here's the script to get the NPC to give the PC an item to the PC that's speaking to him. Just replace the note tag with your own. It works great! Enjoy...

// Created by: Scott Hollingsworth
// Date: 6/24/02
////////////////////////////
void main()
{
object oPC = GetPCSpeaker();
object oNote = GetItemPossessedBy (OBJECT_SELF, "note_to_sarlin");
if (GetIsObjectValid (oNote))
{
ActionGiveItem (oNote, GetPCSpeaker());
}



}