Spells should only have one descriptor. Causing confusion is Enchantment (Compulsion) [Mind-Affecting]. While the rod would do that with lesser confusion, I'm not convinced that a misplaced objects spell needs to contain that.
Causing a victim's clothes to magically rearrange could easily be done with bestow curse and no additional spell would be necessary, but where is the fun in that? So a new spell is in order (not that it is worth the spell slot if you ask me).
Furthermore, I'm unconvinced that than teleportation rather than transmutation should be the basis of the spell, but that's nit-picky and we could argue that portion for far too long.
I'm reconsidering that now that I've looked over a bunch of transmutation spells. As a transportation spell, it is really weak.You aren't even transporting the clothes and equipment over a distance just rearranging them on the victim's body.
Taking your lead, here is an alternate version of the spell at a slightly lower power. I think I've seen a banana peel for another homebrewed spell and since that reminds me of the gag of someone falling, it didn't seem to fit with motif of this spell. It's been edited to death now and I think I'm done with it.
Here is the final edited version of the spell. It should be correct now.
Level: Bard 1, Sor/Wiz 2
Components: V, S, M
Casting Time: 1 standard action
Range: Close (25 ft. + 5 ft. /2 levels)
Target: Clothes and Equipment worn by one creature
Duration: 1 round
Saving Throw: Reflex negates
Spell Resistance: Yes
Golden orbs rush toward a target creature . The orbs surround the victim and swirl around him wildly for 1 round.
At the end of the round, the orbs vanish. The victim discovers that all objects on his person have been moved and some items are inconveniently located.
Because of the chaotic placement of items, the victim suffers several penalties:
- Movement is reduced by half.
- Armor class of characters wearing armor is reduced by 2, since pieces are not worn properly.
- Attack rolls made by the victim are made at a -2 penalty.
These penalties are eliminated if the victim devotes 2-5 rounds (1d4+1) to rearranging his clothing and gear.
Removing misplaced armor takes half the amount of time as removing normal armor (see table: donning armor). It takes the normal amount of time to don armor. 1
A character requiring an item carried in a backpack, pouch, pocket, or other container must spend 2-12 (2d6) rounds searching for the item. This penalty is canceled if 3 minutes are spent unpacking and repacking all gear.
Items held within a bag of holding, Heward's handy haversack, or other magical containers are unaffected. However, the containers themselves are subject to relocation.
Material Component: a pair of mismatched socks
1 http://www.d20srd.org/srd/equipment/armor.htm The donning armor table is at the bottom of the page.