While it may not be as bad as giving Prime Minister Brown 25 DVD's that do not work in Europe (Berman Post: Obama Snubs Brown), Obama gave Queen Elizabeth an iPod. As if it matters, the queen already had an iPod. On the iPod were some of Obama's speeches. Some people are also making a big deal out of the fact that Michelle Obama did not curtsey which is traditional in front of royalty, and Obama used a two handed hand shake. Queen Elizabeth gave Obama a signed photo of herself in a silver frame. This is reported as the standard gift.
More at http://blogs.telegraph.co.uk/toby_harnden/blog/2009/04/01/barack_obamas_gift_for_the_queen_an_ipod_your_majesty, http://blogs.abcnews.com/politicalpunch/2009/04/what-does-one-g.html, and http://gatewaypundit.blogspot.com/2009/04/obamas-embarrass-america-give-queen.html.