The Cursed Shield can be found in Narshe in the WOR in another of the houses I believe. When you equip it it will give you -7 on every stat and a whole slew of status ailments in battle. But if you equip a ribbon when you have the shield equipped, it will negate all of them except for the death countdown(but it's usually at 60, so you have more than enough time to finish the battle). If you fight 255 battles the Cursed Shield, it will turn into the Paladin Shield(it will tell you in the message bar at the top of the screen after battle). The Paladin Shield will give you great defense and either absorb or block all elemental attacks, plus it teaches you Ultima x1. Hope this helps.

Can a mod mark that this thread has spoilers? I think we're getting a little technical and secret revealing in this thread now