William S. Burroughs used to do this to his work; he would sit down with a pair of scissors, chop his writings into individual sentences and words, and glue them back together. He thought it helped him break free from the constraints of grammar and come up with more original ideas. Of course, William S. Burroughs was probably more readable after his work was rearranged in a random order.
Uncle Buddy's Phantom Funhouse has a feature called "The Burrower," which allows you to do this to the text. I tried to implement this feature in this project, but unfortunately the vagaries of running Perl CGI scripts on the Duke University machine prevented this.