Create Trap is in Races of the Dragon, not Dragon Magic.
As for creating new items, that is totally DM-dependent. I love the idea of an Create Trap at-will item for example, but I'm less enthusiastic if someone wanted to do a user-activated glove of True Strike
So it really depends on what he or she will allow, since there are many options.
Nerveskitter sounds like it could be good for an item.
Another brokenly good low-level spell is Power Word: Pain, also from Races of the Dragon.
No save, short range, mind affecting, compulsion.
d6 damage per round for 4d4/2d4/1d4 rounds depending upon targets current HP.
If you have 50 HP or less, you'll take a d6 damage per round for 4d4 rounds.
That is going to hurt.
The average is 35 points of damage. For a level 1 spell. That's the same average as a CL 10 lightning bolt to a single target, just over time.
Silent Image seems like it could help a lot, it's a very versatile spell.
Basically any spell without save option could be good.
Will post more spell ideas as I come up with them.