Spellforge of the........gnomes? Really?

your 4th level spell seems tough.
it's a duration area damage spell with no save.
It can be put where people already are, and the same round they take damage.
I don't know why a chainshirt would help protect a fighter, but a big fuzzy robe wouldn't protect a mage, just as well.

I would reduce the damage, I would make there be no damage dealt the first round as it comes into play, thereby making those tight areas with lots of people trying to get out more fun. I would remove the armor reducing the damage. Lastly I would talk about the fact that it obscures sight talking about the type of modifiers it would give to combat into or outof or within the steam cloud.

Don't get me wrong I like the spell, but if I wrote it up or a player submitted it to me I would have the above to say about it.

My Spell

Nael's Detectable Trail

Circle 1st Resist:None
Duration 10 minutes Casting time: -4
Effect: Special Range:touch
School: Enchantment Damage Type: None

This spell creates a magical aura around an object, a shoe, a sword, or anything that is dusted down with magic as it were. The effects of the enchanting is that quite often parts of the magical enchantment on the object drip off of the object and will fall silently to the ground. This drops are visible to anyone casting detect magic. The drops remain visible for the duration of the spell.

It's a great spell for following people and things.....I made it for a game I played in and loved having it around. Now I have it in the games I run, nobody uses it. Casting time I don't really know enough about your system so I just put a number in there. Range is touch but maybe it should just be close, like you could throw the enhantment a short ways, but then you might need to roll to hit, and that complicates things. I like it because you might even get some dumb mage to buy an object with this "exotic enchantment" on it.