I think teaming up in a Party is a good thing, but it shouldn\'t be mandatory to level like in some games..x_x;
Otherwise, teaming up should have its advantages over fighting solo.

As for a item giving system, just do a roll the dice type of thing. You click a button and a number pops up, whoever gets the highest number gets the item (and of course you could pass the item if you don\'t want it). Thats the best way I\'ve seen any game do it so far~(from FFXI if your wondering)