does anyone know of a store that has a somewhat large selection of ribbon?
how about a store where you can buy cellophane bags for making little candy bags?

Within the garment district you'll find lots of trimmings stores. I believe the biggest is M&J Trimmings, it's on 6th Ave. at about 36th Street. They have a huge selection of ribbons.

I can't help you with the cellophane, perhaps a baking supply store?

thanks!
i happen to have dinner plans near that area, so i will stop by tonight and hopefully find what i am looking for!

I did a search for cellophane bags on EBAY, there are tons, CHEAP.