I had an ogre shaman cast confusion onto my archers, and their damage went up by a factor of ten or so. This may have been caused by the fact that my archers were in a squad of 8, messing up the math somehow. They then hit the shaman with a 386 point blow. This buff lasted through this combat and part of a subsequent one, because it seems you don't use movement points went you attack adjacent tiles, so you can attack everyone that surrounds you in the same turn, and any buffs will carry over.