We've run into the following situation in our last session:
Tahlia was carrying the skull shield. A dragon attacked her, foregoing the use of the Breath template because it was grappled and she was standing on a corner.
Does the shield still supply its bonus against the attack (the 5 instead of 2 damage blocked)? I guess it boils down to whether the attack is still considered a breath attack (on a single space only) or a regular missile attack. Considering the wording of the FAQ, I'm strongly leaning towards the latter, but wanted to get some other opinions.