[RPG] Can you place something living in a bag of holding

The rules are silent on this.

There are not (to the best of my knowledge) standard rules for the non-magical destruction of magic items in 4e. Additionally (and unlike D&D 3.5), the Bag of Holding entry says nothing about how to break it, or what happens in that circumstance.

So either magic items are not casually destructible (which is my guess), or this is a gap they left in the rules.

I'd lean toward "magic items aren't easy to break," for two reasons.

First, the previous editions did emphasize the destruction of the Bag of Holding, to the point where it became a common joke/meme. Because of this, 4e's silence on the issue is unlikely to be an oversight.

Second, 4e's ethos does not look kindly of the casual elimination of character power and agency.

So what happens to the objects inside a Bag of Holding if it is somehow broken?

That's up to the individual group to decide; there are no explicit rules to follow.

Three things you can, and should do:

• Admit your mistake. Tell the player, "hey, I misunderstood the shield rule here, you can weild two, the second just doesn't do you any good." It's important to own up to this asap.
• Let him rebuild his character from the ground up. You've clearly found out his character concept no longer works the way he wants to. Offer him the opportunity to rebuild the character completely with level appropriate gear etc.

• Offer him the Testudo Shield fighter as an option. If he loves the concept enough to keep it, even without the AC bonus, MCing fighter and taking the Snapping testudo paragon path would be the best option. This is kind of a crummy option for a PP, but it's a cool concept.

• If you decide to allow this, change the bonus type on the second shield. My recommendation would be to allow him to take the homebrew feat "two shield fighting" that allows him to use the shield bonus of the second shield as a feat bonus to AC (or AC and Ref, and additional defenses if he spends the feats on them). This is pretty fair, it's a bit high in heroic, on par in paragon, and probably a retrain candidate in epic. Check his final AC, but it should be about the same as a pally in full plate with a heavy shield. Make sure the penalties stack and offer a feat to remove one at heroic (he can take a feat to remove both in paragon).

All this to say, own up to your mistake, give him an opportunity to fix it. But as a note, if you have DDI, build your characters in the builder, it does all the math for you and it will catch a lot of these bonus stacking issues your pointing to.

Mostly though, just talk to your player, explain your mistake and see what you two can work out. Communication is good and your both learning the game, keep it honest, and keep talking.