So what would the penalties be??

[Hypersmurf]

heh, I'd never dream of debating it with the smurf...

Well, I don't insist on my reading. I think based solely on the Core Rules, either is valid.

My opinion is weighted the way it is because of the answer in the 3E Main FAQ on Defending weapons - which fits the "wielding a second weapon" definition of "fight this way" - and I generalised from there taking that interpretation as correct.

But if a DM ruled your way, I wouldn't consider it a house rule, just a different interpretation of the RAW.

-Hyp.