It is interesting that this came to light right after I attended a "mandated reporter" training session on child abuse (I am a teacher in PA). According to the letter of the law in PA, Paterno is off the hook. All he had to do legally speaking was pass the information up the chain of command. For example if I suspect child abuse, or am told of an incident, I am obliged to report it to my principal and then it is up to her to take it further. Unless they can prove a case where there is no doubt he had knowledge of an incident and did not report it, he will not be charged. However, morally speaking, I cannot fathom how he would not continue to investigate this on his own and ask what the result was of the one incident he did report. Additionally, "mandated reporters" are free to contact police or ChildLine on their own if they don't think the higher ups have taken it further (although they are not REQUIRED to take this step).
I agree with all those that say he should not get to finish the season, and I do find it despicable that he did not follow through on the one incident he was notified of. This entire thing makes me sick to my stomach.