Answers. The stuff Gepetto gives you are gummi ship designs. They are gummi ship designs that change the appearence and stats (not entirely sure yet) of you gummi ship. As you already know, they are gummi ship designs.
At this shop he designs blueprints for Gummi Ships and gives them to Sora for free, so that Sora can use them in the war against Maleficent and the Heartless. In the credits of the first Kingdom Hearts game, he is last seen laughing with Pinocchio after he truly becomes a boy.
The first thing you want to do is check out Geppetto’s House, it’s next to the Accessory Shop. He’ll hand over the Geppetto Gummi Blueprint and if you talk to him again and meet the requirements for the other Blue Prints he’ll hand those over too.
Gummi ship blueprints are dropped by enemy ships when traveling between worlds in the Gummi Ship. There is a 10% chance you will receive the blueprint from the respective ship upon defeat.
As many others who have lost their worlds, Pinocchio ends up in Traverse Town. While stealing inside the Accessory Shop he is met by Sora, Donald, Goofy, and Jiminy. Without his conscience, Pinocchio has been misbehaving, but in the end Jiminy manages to set him straight.
The name Geppetto is a Tuscan diminutive of the name Giuseppe (Italian for Joseph).
All you have to do is go to the alleyway from the second district, which is next to the fountain, and then the gizmo shop. To get to the gizmo shop walk along the path next to the hotel entrances and at the end of that path is the gizmo shop (its the big building with the bell tower in the second district).