You, you.  Give me warm.  Give me...soft.
 
So lets make a list of what the crow girl will give you and what she wants.  As for its location, its back at the asylum on the cliff.  As you walk towards it after being dropped off by the giant crow, look to the left, there should be a space jutting out.  Walk towards that and you should hear the above lines.  What you need to do is drop a certain item INSIDE the nest, quit, and then reload.  Your dropped item will disappear while a new item will be in its place.  If you drop an item outside the nest, it's gone.  If it is an inappropriate item, the crow has the decency of telling you that it is not warm, nor soft.
 
Also note, each trade can only be done once, just like Demon's Souls.
 
Sun Medal - White Titanite Chunk
Cracked Red Eye Orb - Purging Stone x2
Blood Red Moss Clump - Twinkling Titanite
Purple Moss Clump - Twinkling Titanite
Blooming Purple Moss Clump - Twinkling Titanite x2
Pendant (Gift) - Souvenir of Reprisal
Humanity - Ring of Sacrifice
Egg Fermiuge - Dragon Scale

 
If you have more, post them.  I know rubbish can be used as well, but I dropped mine outside the nest and its gone with nothing in return.

Nice, gonna give it a try. It can only be done after ringing the first bell, correct?

Purple Moss for Twinkling Titanite?! Damn!

I found a longer list on one of the wikis:

http://darksouls.wikidot.com/crow

Turambar, I did exactly the same thing as you with the rubbish, since you just had to get it close in Demon's Souls I didn't think it would matter too much if it was in the nest.

@xXxLYNCHxXx: It can be done if you have the elevator shortcut open

i know where the nest is....but how do you get there again after being taken by the crow? Also, instead of making a new thread,...anyone know what to do to fight ghosts if you no longer have curses to be able to hit them? I hsve none and the only time i ever got any was from killing ghosts....so how do you get an item from a ghost by killing it if you cant hurt them. Oh me...

i know where the nest is....but how do you get there again after being taken by the crow? Also, instead of making a new thread,...anyone know what to do to fight ghosts if you no longer have curses to be able to hit them? I hsve none and the only time i ever got any was from killing ghosts....so how do you get an item from a ghost by killing it if you cant hurt them. Oh me...

@Resident4t said:

@handlas said:

i know where the nest is....but how do you get there again after being taken by the crow? Also, instead of making a new thread,...anyone know what to do to fight ghosts if you no longer have curses to be able to hit them? I hsve none and the only time i ever got any was from killing ghosts....so how do you get an item from a ghost by killing it if you cant hurt them. Oh me...

You can buy them from the hollow lady in the tunnel that connects the undead burg and the firelink shrine. I think they are like 5000 souls each though

Oh? I must of missed this lady. Is the tunnel you are referring to the one with the one rat? I hope I didn't kill her somehow.

Also, has anyone had a part at Firelink Shrine where you walk into that water area where the crow is and you hear "Hmmmmph Hmmmph." Happened once and never heard it again and never found out what that meant. This was after ringing the bell in the Undead Burg area.

@handlas If you mean how do you become cursed to fight the ghosts, then you can go in the Depths and get hit by the frog guys. They will curse you so you can fight the ghosts without having to use the items. All you need then is a purging stone after you are done which can be had for 3000 souls at the man by the 1st bell. Don't buy the purging stone from the sewer lady, she rips you off.

@handlas: Have been to the section of undead burg with thieves and panther-like animals? If not than that's why you haven't seen the lady in the waterway. She's behind the locked door.

@The_Hiro_Abides said:

@handlas: Have been to the section of undead burg with thieves and panther-like animals? If not than that's why you haven't seen the lady in the waterway. She's behind the locked door.

I have. Maybe I haven't been back to that tunnel since then tho. I'll have to check back then. Thanks. I did free one guy in that area.

Can someone explain what is supposed to happen when you reload? I've dumped a few things in there but nothing has happened, the item is gone and there is nothing new in my inventory.

For anyone that has questions on how to get back Asylum island here's a video. It does go on a bit on how to fight the secret boss though.

@White said:

Purple Moss for Twinkling Titanite?! Damn!

Not having played Demon's Souls, is this a good thing? Really confused about the upgrading system.

Can someone explain what is supposed to happen when you reload? I've dumped a few things in there but nothing has happened, the item is gone and there is nothing new in my inventory.

@JacDG said:

@White said:

Purple Moss for Twinkling Titanite?! Damn!

Not having played Demon's Souls, is this a good thing? Really confused about the upgrading system.

Twinkling Titanite is a Dark Souls thing, and it is a rare upgrade stone. Very rare in fact; cause you only get it from the crystal geckos IIRC.

The purple moss, on the other hand, is common as SHIT. More common than getting firebombs or hollow soldier armor pieces.

@Turambar: When you give the crow rubbish you get a titanite chunk.