I've read somewhere on the forums that the AI does better when companions/heroes are equipped with a two handed weapon as opposed to one handed w/shield. Is this true?
sword of war works pretty well, thats a 2handed one. Other than that I like to give them morningstar/shield. Lately though ive gravitated more towards the rp of the character. Matheld 1haxe shield, klethi projectiles etc
It's up to you. 2h gives them more lethality and levels them faster, but they are VERY likely to go down early-mid game. If you need them to be alive and functioning like the doctor of the party then give him 1h and shield unless you're willing to suffer some extra loss to lvl them.
Masterwork Saber + Huscarl Shield. They fight well, take hits well, and nothing short of a jarid between the attack and block animation can put them down.