I have to admit that I'm tempted to throw something like this together for a con game. I'm not sure what game system to use though-- I think you'd want something lighter and faster (and more lethal) than most versions of D&D. Perhaps a very low-level group could work.
Low-level anything would work, honestly, and would be very appropriate given that most Paranoia PCs start off as Reds or Infrareds. Yes, there were a couple of adventures in which PCs were started off as Blues, but they were the exception rather than the rule.
However, all you REALLY need to do is make sure the party is ill prepared for whatever it is they're to face. That could be done by equipping each PC with inappropriate gear- as implied before, the Wizard gets Platemail, the fighter gets a dagger, etc.- or their intelligence on the situation is so appallingly bad that they're wandering XP for the monsters.
For example, their overlord could equip them all with shiny metal armor, masterwork weapon and the like, designed to protect them from undead...but they get sent to the wrong province and wind up facing some ravenous Rust Monsters.
Or perhaps they're just fighting out of their weight class- they have possession of the Realm's Übersword of Flying Buzzsaw Doom to complete their mission, but it refuses to be wielded by any of the party out of disgust at their lack of potence. And then the Dragons return to Capistrano...Or that million-bat swarm (like the one in Austin, TX) happens to be a Dracula family reunion.