Can a halfling use a bastard sword 2-handed?

[KarinsDad]

Yes, but a Medium-size character can use a bastard sword one-handed without the feat - at a -4 penalty.

Yes, I guess you are right.

I was mis-interpreting the sentence "A bastard sword is too large to use in one hand without special training: thus, it is an exotic weapon" to mean that it was too large to use, hence, it could not be used. No, it just means that it is exotic for that reason and can only be used with the penalty if you do not have the feat.