We are trying to figure out how to resolve this in a multiplayer game. If a play is not eliminated but has no heroes (shuffled in to his deck) how would an un defended attack resolve. We resolved it by making another player take the undefended damage. But is that correct way to resolve the situation ?

In the very rare case that you describe I'd say you don't assign the damage to anyone.

Consider it a small blessing to offset the considerable challenges: no heroes to collect resources, no way to get additional cards in play, and yet still need to reveal an additional card for staging so threat is likely to escalate out of bounds.

I don't know maybe. But that doesn't sound very Lotr Lcg to me. I would guess at the very least you loose an ally

How did your hero get shuffled into the deck?

The Foundations of Stone scenario has a treachery called Lost and Alone that can make this happen, and the FAQ clarifies that you are not eliminated if you don't control any heroes as a result of this. You could also use the Desperate Alliance player card to give control of your last hero away, and wind up in the same situation (for one phase). Would actually be a really neat strategy to manage attacks in a one-hero deck during a multiplayer game.

The rules provide for placing damage on heroes controlled by you during undefended attacks. If you have no heroes, there's no damage to be placed, simple as that! Can't go about inventing things like placing damage on an ally or on another player's hero.

That would be cool. And I see your logic. It just seams very unlike this game to let some one take an undefended attack and have no effect.

Is it possible to abuse this by constantly cycling Desperate Alliance? You could easily start a deck with 3 heroes, sack two of them once you are set up, and then just spam Desperate Alliance. Although, I'm not sure how repeatable it is just yet.

Really your goal is to get to the bottom of your deck and then recycle Galadhrim Weaver over and over so you always draw Desperate Alliance. Also, if all three of your heroes are Spirit, then you could have played Map of Earnils before you sacked your two heroes and have even more cycling available to you.

You could even have a really strong early game with Caldara sacrificing herself for some strong allies since you want to get down to one hero eventually.

Song of Earendil could take on the other players threat raising to make sure you are the one to engage the enemies.

It seems like it may be possible to abuse, but perhaps not since the Love of Tales errata it might just be too hard to set up.

Is it possible to abuse this by constantly cycling Desperate Alliance? You could easily start a deck with 3 heroes, sack two of them once you are set up, and then just spam Desperate Alliance. Although, I'm not sure how repeatable it is just yet.

Really your goal is to get to the bottom of your deck and then recycle Galadhrim Weaver over and over so you always draw Desperate Alliance. Also, if all three of your heroes are Spirit, then you could have played Map of Earnils before you sacked your two heroes and have even more cycling available to you.

You could even have a really strong early game with Caldara sacrificing herself for some strong allies since you want to get down to one hero eventually.

Song of Earendil could take on the other players threat raising to make sure you are the one to engage the enemies.

It seems like it may be possible to abuse, but perhaps not since the Love of Tales errata it might just be too hard to set up.

Emptying your deck is still pretty easy with Emery and Rallying cry. You could have Halbarad as a hero to help you take on more enemies in the early game then kill him off.