Fancy fellows with fancy gift-wrapping (7)

I believe the answer is:

figment

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'fancy' is the definition.
(I've seen this before)

'fellows with fancy gift-wrapping' is the wordplay.
'fellows with' becomes 'men' (I can't explain this - if you can you should give a lot more credence to this answer).
'fancy' indicates anagramming the letters.
'wrapping' indicates putting letters inside.
'gift' anagrammed gives 'figt'.
'men' going within 'figt' is 'FIGMENT'.

Can you help me to learn more?

(Other definitions for figment that I've seen before include "One's imagined" , "Imaginary thing" , "Thought" , "Deception, sham" , "Fantastic notion" .)

I've seen this clue in the Sydney Morning Herald.

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