$noderev = node_load($node->nid);

$paragraph = new ParagraphsItemEntity(array('field_name' => 'field_body_paragraphs', 'bundle' => 'embedded_text'));
$paragraph->is_new = TRUE;
$paragraph->setHostEntity('node', $noderev);
$paragraph->field_embedded_text[LANGUAGE_NONE][0]['value'] = '<p>' . nl2br(strip_tags($form_state['values']['product_description'])) . '</p>';
$paragraph->field_embedded_text[LANGUAGE_NONE][0]['format'] = 'paragraphs_embedded_text';
$paragraph->save();

$paragraph2 = new ParagraphsItemEntity(array('field_name' => 'field_body_paragraphs','bundle' => 'embedded_image'));
$paragraph2->is_new = true;
$paragraph2->setHostEntity('node', $noderev);
$paragraph2->field_paragraphs_embedded_image[LANGUAGE_NONE][0] = (array) $file;
$paragraph2->save();

node_save($noderev);

NOTES:

1. As far as I can tell, a new ParagraphsItemEntity requires an pre-existing node.