You go before a panel of the crustiest grey beard CAGs that can be roused from their slumber. Depending on your choice of gifts and answers to trivial questions, you are bestowed with certain abilities.
Previously successful candidate's gifts included gruyere wheels, Gurkhas, and power glove plushies. Unsuccessful gifts included frankincense and myrrh.
Brush up on your gaming trivia and knowledge as well. Winners can typically give detail about everything from the ending scene of Pitfall! to a spirited defense of the prototypical fighter-red mage-white mage-black mage group setup in FF I.
I usually ask what the color of the square is where you search to find Erdrick's armor.