This is a direct copy of Schnoebelen's report hosted on
http://www.chick.com/articles/dnd.asp . Schnoebelen, Thomas Radecki, and darned near every person in that so-called report was discredited to heck and back by Mike Stackpole over a decade ago, with Stackpole's "Pulling Report," or by other publications that have come out in the intervening years.
This site claims that the "Former TSR employee in question was named Paul Sanchez. The only references to a "Paul Sanchez" I have seen is some singer in a band called "Cowboy Mouth", so I am GUESSING that ain't him. But NO ONE named "Paul Sanchez" to my knowledge has ever been in the employee credits of any early TSR product.
The part I love is how the spells were supposed to be "realistic." Do witches actually use tin-can telephones to send messages long distances? Do they actually use powdered iron to make things grow? Do they use beans to cause blasts of air? (Well, other than the mundane ways, of course.)
If that's real, then I'm an satanist, and so is anyone who ate a bean burrito.
I'm guessing that, if Schnoebelen's story is even remotely true, what he had were two neighborhood guys come over, say they were from TSR, and they wanted to talk to the "Real Witch" in the neighborhood so they could add something extra to their homebrew - Occam's Razor, and all that.