
S. J. Digriz |

Dust of Appearance makes anything within 10' of the user visible etc.
It is not a thrown object with a range increment. You fling it into the air (or presumably blow it into the air if it is the hollow bone tube variety) to get the 10' radius of effect.
Does it affect the user? They are, technically, within a 10' radius.

Azothath |
sometimes you just have to follow the rules in the item description and with Dust of Appearance it falls a bit short.
Usually (at a minimum) spell effects appear in an area adjacent to the caster and I'd assume that here. So mark off a 10ft radius sphere adjacent to the user(caster). IF the user wants to be in the area of effect then he can be in it.
Consider it a glitterdust with a 10ft range.
As a GM you could rule that it has a range of 0ft and would affect the user. Just inform your player BEFORE he buys it.
Lastly, a GM could give it a range increment (5 or 10ft). Then it is just a matter of an attack roll versus the AC of a square (or target) with range modifiers. Usually this mechanic is used with bags of stuff that explode when they hit.