By giving a gift you can show your appreciation and gain a tad bit bonus disposition from any npc. But beware, they'll often respond logically. A beggar will not appreciate flowers when he is asking for money to feed his children, the male city guard might be quite surprised if you are a sturdy male nord warrior and try to hand him a bouquet of orchids... Responses are also partially based on random 100.

Naturally, you can now also show all your companions some extra appreciation by giving them a gift. For a cheap sum, you can buy Companion amulets from various merchants. These, you cannot give away as gifts. Instead, you can put them in the inventory of your companions (not Vilja, see below). This will ensure that the companions won't give the "wrong" kind of replies - after all, you do not want your male companion to say that he is going to give his lovely bouquet of flowers to his wife? Non-companions also will be very reluctant to accept jewelry from you, unless their disposition towards you already is very, very high.

I'm sure no-one is surprised to hear that Companion Vilja will have her own set of dialog. First thing that happens when you start this mod is that a new amulet is added to your inventory. It's called "Put In Vilja's Inventory" so I guess it's obvious what you should do with it (if you are using the Companion Vilja-mod. If you aren't, just get rid of the amulet). It will work as a dialog filter, so that if it is Vilja you are talking to and she has the amulet in her inventory, she will actually reply with her own, often unique, voiced entries, whereas everyone else have silent dialog.

You can now also give beggars food and some decent clothes (vanilla Oblivion clothes) to wear. They will indeed put on the new outfits, but not while you are watching. However, the next time you return, the poor beggar asking for a coin might be dressed in your fancy upper class robe and blue suede shoes.