Has anyone heard one way or the other whether they are allowed? I knew there was some contention as to whether you could take shields along with blunderbusses.

The rules clearly state that a Warrior can EXCHANGE his Shield to a Blunderbuss. So, no Blunderbusses with Shields.

Okay good...well, or not good as the case may be. But that's cool. I don't intend to let anyone get close enough to me to need them. That's what 6 units of blunderbusses are for. :D

But they are bound to get close, I mean the range is only 12''. They wouldn't be too bad in HtH would they??

Not at all. It's just that Blunderbusses, with their wording etc., are pretty darn powerful weapons. To make the blunderbuss dwarves as good in combat as a non-blunderbuss, non-greataxe warrior would be stretching it, IMHO.