sblack162: I ask because while it is equipped my shield disappears from the equipment slot. When I hover my cursor over that area it reads the stats for the shield, but it's not there. And it's not in my inventory. I think I'm still protected by it, but I'm not sure.
It is a two handed sword. It is normal for your shield to disappear when a two handed weapon is equipped. Supposedly, you get armor protection from the shield being strapped on your back.
I was told that it gave protection (in another forum) but could not find documentation to confirm. It does not seem to add protection but adds to the weight you carry. You might try combat without the shield. If you find that your damage is the same without it, you could drop it to save weight. If the shield is charmed be sure to check your stats before and after dropping it as the charms might be helpful to critical stats regardless of whether the shield gives damage protection.
I used the Singing blade for the rest of the game once I found it . . . =)
****spoiler****
Edit: If you missed the cave East of the Dwarven village you might want to backtrack. There is a cave which is blocked by rocks just east of the village. Move the rocks and find the Blade of Chaos. This is also a two handed sword but is often better than the Singing Blade. It is different every game so you just have to find it an compare it to the weapon you have. Note that it is 20 lbs heavier. See attached image.