I thought I'd post this here because I seem to be having trouble getting anyone's attention on the main forum (those people are nutso sometimes).
So for all you Ragnarok people!
1) You don't have to be in your own home city - I'm a hume from Bastok and did my event in San D'oria
2) You don't have to use sweets. I spent a total of 4-6k to get 3 items (and then I stopped) on Apples and Grapes from The San D'Oria Grocery Store (in South San D'oria).
3) You don't have to switch NPC's. I stood at one npc until I got an item - and then I moved on.
4) Trade order. 1 grape - cancel costume - 1 apple - cancel costume - 1 grape cancel costume - 1 apple cancel costume ... and so on until you get an item.
5) To get the HQ items - you do not need the normal item equipped. I got a Treat Staff II on my 3rd stack as my first item. 1 stack later I got a Pumpkin Head II.
I'll add to this as the replies come in with more information. Please no 3rd party info - I want only 100% accurate information from people who experienced the event.