Welcome to the board,
First of all, make sure that the person that has the item, is selected. Then click on the USE/GIVE icon and then click give on the bottom of the scoll. click the down arrow below it to scroll thru your inventory, until the item appears. You should then get a blue targeting cursor.
If you've done all of that right and still have a problem, first check the help desk thread. If that dosen't help, I now they'll need to know about your system. Especially what OS your using.
As far as starting over from scratch. You can go to the 'INN' select a character, right click on them to open their pack and you'll see 2 icons on the upper left side of the screen. Just click 'Delet pc'. once you have a new group, leave the INN and click on the computer icon (bottom left) and in the next screen there will be a button (upper right) to 'Reset adventure'
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..I hope that helps...I gave Rathpian (A.K.A. Mr. rat pie) a bag of gold, my first time thru..
... Good luck