Mergy
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It allows you to have a disguise very quickly (usually making a disguise takes time) and it gives you a +10 bonus on your disguise. The result should be looked at with the Disguise skill.
As a gnome, to look like an adult human would be -2 for a different race, and -10 for a different size category; therefore with disguise self you would be at a net -2 to disguise yourself that way. To be a human child instead, you'd be at +6 (+10 from the spell, -2 for different size, -2 for different age category).
Mergy
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A disguise kit and disguise self certainly stack. One provides a circumstance bonus, while the other provides an untyped bonus. You could indeed think of it as a gnome wearing stilts from his disguise kit to cancel out a bit of the size penalty.
There are a lot of different modifiers with the Disguise skill, and when you account for all of them, having a high rank in it becomes very necessary to achieve a lot of fun things with it.
| Sideshow3D |
As per the PRD for the Hat of Disguise:
This apparently normal hat allows its wearer to alter her appearance as with a disguise self spell.
Hat of Disguise at PRD
So, with this we find that the Hat works as if the "Disguise Self" spell.
As per the PRD for the "Disguise Self" spell:
You make yourself—including clothing, armor, weapons, and equipment—look different. You can seem 1 foot shorter or taller, thin, fat, or in between. You cannot change your creature type (although you can appear as another subtype). Otherwise, the extent of the apparent change is up to you. You could add or obscure a minor feature or look like an entirely different person or gender.
The spell does not provide the abilities or mannerisms of the chosen form, nor does it alter the perceived tactile (touch) or audible (sound) properties of you or your equipment. If you use this spell to create a disguise, you get a +10 bonus on the Disguise check. A creature that interacts with the glamer gets a Will save to recognize it as an illusion.
Disguise Self at PRD
In the spell description it is mentioned that if you use it for a disguise, you get a +10 while using this spell. However, it also mentions that you can change your gender, and it says you can appear taller or shorter (to a small degree). It also says you may appear as a different subtype.
Type must be Humanoid (Cannot change this) These monsters below are examples of being humanoids with other subtypes. (Note, these are not to be confused with Monstrous Humanoids, which is another type.boggard, bugbear, cloud giant, cyclops, dark creeper, dark stalker, derro, drow, drow noble, duergar, ettin, fire giant, frost giant, gnoll, goblin, hill giant, hobgoblin, kobold, lizardfolk, merfolk, ogre, orc, stone giant, storm giant, svirfneblin, tengu, troglodyte, troll, wererat, werewolf
Monsters by type (Look for "Humanoid")
Hope this information helps.
EDIT: I just noticed this was a necropost, but I'll leave this up in case someone stumbles upon it, just like I did. Thanks.