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Items worn do not seem to increase in size when under the effects of Enlarge Person. This causes everything to become "tight" and causes more of an armor class drop than the typical negative dexterity and armor class that the spell is supposed to give.

Amendment: The current helpfile does not specify that equipment will scale in size as a result of this spell, but failing that, the utility of the spell will be limited.

Confirmation: Confirmed on game and testport, casting this spell does not change the size of worn armour. Mass Enlarge Person suffers the same problem.

The same problem also applies to reduce person. Being as the PHB states that reduce person is supposed to increase AC, the fact that armor becomes loose negates this benefit. This isn't so much an issue with enlarge person as that is supposed to drop AC, but it's probably still dropping the AC more than it should be.

Entered into bugzilla.

Related post here

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