Is there a way to gift people an Xbox gift Card (Purchased Using Microsoft points)

There is no way to gift content over Live. What you would need to do is purchase a Microsoft points card or Microsoft gift card and he can use that to add currency to his account to purchase the content.

You would have to try contacting
Microsoft Rewards support prior to redeeming to see if they can send you a code.

Microsoft Rewards used to have a way you could send the gift card to people in your family, but they took that feature down a while ago. So there is currently no way to gift someone an Xbox gift card through the Rewards program. Since the funds are depoaited directly into your account, you cannot transfer them to someone else. You would have to purchase a gift card from the Microsoft Store or another retailer using another payment method.

Gift cards cannot be used to purchase gift cards. The Microsoft account balance is essentially the same as a gift card since funds typically come from Xbox gift cards.

[quote user="Habenero Pepper"]it's a gift card, you know to give to people as gifts[/quote]

Microsoft point cards were also classed as "gift" cards.