Rach,
Kosmos Central actually has a gift box / wrap mod that sounds like would fit what you are looking for. More detail on it can be found by clicking on the link below:
http://www.kosmoscentral.com/cart/X-Cart-Gift-Boxing-Mod-by-Kosmos.html
Our mod would give store owners the ability to give their customers the option of gift boxing / wrapping any product. Customers can write a personalized message with each box and choose whether to include the pricing tag(s).
If you check out the detailed images in the URL above, you can see, step-by-step, the entire process.
Let me know if you have any questions. Thanks!