Magical armors and such will resize themselves to fit the new hero's body.
Magical weapons will not work for the new body if it can't normally hold them. The exception to this is if the weapon is enhanced with the "Opposable" ability, which is designed for this exact situation.
Spell magic items may or may not work. Wands and Staffs, spell trigger items, will still function normally for the character, as will use activated items.
Spell trigger items, such as scrolls, will only work if your DM will allow you to cast the spell normally (ie. He isn't being an SOB and saying you can't do somatic components anymore).
Wow, I thought it was only in my campaign that goofy stuff like this happened. We had a wizard disentigrated, so his party gave the powder that was left to some brewer gnomes who used it in making a concoction called "Wicked Wizard's Rum". So as you see, mundane methods were used to turn a character to an alcoholic beverage. I never knew reincarnate could be used like that...
No, you'd have to take the humanlord prestige class. With the ability to civilizeshape into normal, dire and legendary humans, summon humans to fight for you, and have a group of humans affected by the spell human friendship, up to twice your hit dice.
The prerequisite of course would be the "control humans" feat.