Item Pipes transfer a single stack of items from one blocks inventory to another (I.E Chests). Blue side is Input and the Red side is Output. You can rotate the Item Pipes output by right clicking on it (While not holding a Power Wire). You can rotate the Input side by Right Clicking while holding a Hammer. When placing Item Pipes they will orientate based on the side of the block you are looking at.

The Toggle version will only output items if there is a redstone signal being sent to it.