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According to the Armor for Unusual Creatures table, tiny or smaller creatures receive half the AC from armor. So what happens to the armor bonus when the armor bonus is only +1?

For example, Gnome Twistcloth has +1 armor bonus when made for medium creatures. Does this armor still have a +1 armor bonus when made for tiny creatures?

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You round down unless stated otherwise. So it would have a +0 AC bonus. It could still exist as an armor if you wanted, and could be enhanced with a +1 (and thus have a +1 AC bonus overall). But Tiny versions of mundane +1 AC armor has no AC bonus.

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    \$\begingroup\$ let us continue this discussion in chat \$\endgroup\$ – KRyan May 3 '13 at 4:56
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    \$\begingroup\$ I forget, do size differences cause to-hit adjustments in 3.5? I might apply the full armour for tiny-on-tiny violence \$\endgroup\$ – blueberryfields May 3 '13 at 15:16
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    \$\begingroup\$ @blueberryfields Every size category smaller than Medium results in a +1 Size bonus to attack and AC, a +4 Size bonus to Hide, and a -4 Size penalty to Grapple. These bonuses and penalties stack with each additional size category. Smaller creatures also have smaller Space and Reach. \$\endgroup\$ – KRyan May 3 '13 at 15:19
  • \$\begingroup\$ Quite frankly, I would give armor at least a +1, otherwise I agree. \$\endgroup\$ – CatLord May 3 '13 at 16:59

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