I wonder what actually occurred. (sequence of events)
When Paterno heard about it the first time, he did the right thing in telling the University and letting them handle it. While the accusation was made, was there any proof that it actually occurred at the time?
Since it would have been a very high profile situation and many men's lives where at stake here. A false accusation could have been very damaging to innocent people. Also, you can't just fire someone because someone accused them of wrong doing. There needs to be some type of proof. (obviously my opinion)
So, IMO Paterno did the right thing in informing the University and not going public with it. It would have been the University's job to inform the police and do a thorough investigation on the subject.
Now, the question I have is did Paterno follow up with the University about the situation or just let it go and let the University handle it. I believe it was Paterno's job as a University employee to protect the students. He should have followed up. We don't know if he did.
If Joe did follow up, what did the University say to him? If they said that the investigation said it was a false claim, then Paterno did nothing wrong. Again, you can't (IMO) fire someone just because they were accused of something without proof. Anything other than that, action should have been taken on Paterno's part.
If Paterno knew of several reports of the same type, then Paterno definitely should have made a change in his staff. (even if he had to wait until the end of the season) Guilty or not, you can't ignore several accusations of the same type from different people.
Either way, he needed to step down. I just don't know what level of guilt Paterno actually has in this case.
There is no question those two guys at the top deserve jail time for their hand in covering up the situation. IMO, they are as guilty as that guy who committed these horrible acts.