nobody's too dumb... just start asking questions! Anyway, to answer these assumptions (remember... you should technically never assume...)
1) We can not make a turn at any intersection. - Not necessarily
2) The letters are at corners only, ignoring all the intersections/four-ways. Sort of hinted in the topic, but could be a misunderstanding on my part. - Not necessarily
3) The item we are looking for is a P2P item. This was strongly hinted in the topic. - yes
4) The item is tradeable, since we are supposed to hand it/them in by the end of this treasure hunt. - yes
5) The item is probably cheap and insignificant, for the same reason as 4). - it's less than 100 gp
6) The item we are looking for contains a fair amount of letters, this because the maze is fairly big. - no
7) The quantity is a low number, probably under 10. For the same reason as 4) and 5). yes
The words are not scrambled, because that would make it nearly impossible. yes.