Santa Claus
Has a house on the Ice Island of Vega. Between the Server Saves of December 12 and 31, he can be found in or near each major town, usually near the Depot.
Ab'Dendriel: Underground shops, near Shanar. here
Ankrahmun: In the Tavern west from boat. here
Carlin: At the White Wave Cellar, south-west of town. here
Darashia: South of town, next to the Tavern. here
Edron: Inside the Castle, next to the Depot. here
Farmine: In the Tavern west from the steamship. here
Gray Beach: Inside the Depot. here
Kazordoon: Jolly Axeman Tavern. here
Liberty Bay: West of the depot. here
Port Hope: Grassy area south of depot. here
Rathleton: In the Grand Opera Café, west from depot. here
Svargrond: West of depot. here
Thais: At Frodo's shop, north east of depot. here
Venore: Under main depot. here
Yalahar: In the Tavern east from depot. here
Notes
Only appears during Christmas time, between the Server Saves of December 12 and 31. Rumours say that if you are nice to him, he will give you a present. The present you receive is random.
You might receive:
10 Candy Canes +
10 Snowballs
10 Candy Canes +
1 Christmas Bundle
10 Candy Canes +
1 Piggy Bank
1 Energy Ring +
1 Dwarven Ring +
1 Ring of Healing
1 Red Gem
1 Shiny Stone
1 Transcendence Potion + 
1 Bullseye Potion + 
1 Mastermind Potion + 
1 Berserk Potion
1 Santa Doll
1 Doll
1 Violet Gem
1 Dracoyle Statue
1 Stuffed Dragon
1 Moon Backpack
Presents which are only given to a few lucky players:
1 Panda Teddy
1 Teddy Bear
1 Santa Teddy
1 Amulet of Loss
Bunnyslippers
1 Dragon Claw
1 Ball Gown
1 Gold Ingot
1 Snowman Doll
1 Bear Doll
1 Soul Stone
Also, if your server successfully finished the Lightbearer event and you helped by lighting all 10 fire basins, you may ask him for a very special present. You will then receive the Blazebringer mount.
In previous years Santa Clauses were controlled by CipSoft employees, and could hurt you if you were foulmouthed. At that time he also gave away a larger variety of items. Back then Knightmare organized races to find Santa Claus, giving a Teddy Bear to the winner. Nowadays he only gives extremely lucky persons on any server the precious Teddy Bear.
During one year Santa gave better gifts in premium cities, but has since returned to his usual self, giving out random presents in every city.
See also: Santa/Presents