CRGreathouse said:
Not mechanically.
It's a Medium-size Exotic weapon and a Large Martial weapon. A Small PC can wield it in both hands with a -4 penalty, or can take EWP (if they have the requisite Str) and remove that penalty.
Only partially.
It's not a medium sized exotic weapon with respect to a medium sized character.
They cannot use it one handed at all. But, they can use other medium sized exotic weapons with the -4 penalty.
IceBear said:
See Xahn'Tyr....I told you so 
Karinsdad has never let me down with his tenacity 
IceBear
Actually IB, I think I'm going to change my thinking on this one.
Technically, a small sized character can use it in two hands with a -4 penalty since the description of Bastard Sword does not say that he cannot. It should say that and it does imply that, but it does not explicitly state that.
Personally, I think it is poorly written. It should be a ML weapon. As such, medium characters should not be able to use it one handed (which they cannot) merely due to size and small characters should not be able to use it two handed (which they can) merely due to size. The exotic weapon feat should then be used to allow mediums to use it one handed and small to use it two handed.
So, technically in response to the original question, a small character can do that.
But, I think that a small sized character should not be allowed to use it at all without the feat (but technically, they can with the -4 penalty), just like medium sized characters cannot use it one handed at all without the feat (medium sized character can use it two handed because they can use large weapons two handed). YMMV.