First time in Spain. What items should I be looking for to buy? Every region or City has it's "item". Suggestions welcomed.

Could you narrow it down a bit as to what region you'll be in? Spain has a lot of "items" so it would be helpful. Also, any restrictions on packing or shipping?

Here are a few of my favorites:
Lace in Camariñas, Galicia
Hand woven blankets, throws, etc. Morella, Castellón
Jarapas in Níjar, Almería
Ceramics – Talavera de la Reina (all over really)

Here's a website for Andalucía:
http://www.andalucia.com/art/home.htm

Wine!

You can try wine from each of the regions
Rioja - the most internationally famous, both reds and whites
Ribero del Duero
Rivas Baixas
etc.

Before I moved here and would come visit, I used to go home with my suitcase filled with wine. Now that I live here, my rack is never empty.