Can you do a gameplay example of actually using it? I am a bit hazy as to how it would actually go down

Same here. It reminds me of the Jackal shield from the Halo game series. Never was sure if such a shield would require something like Brawling Parry, Melee Weapon Parry, etc, or if it gives bonus dice automatically if you use a hand to hold it in place, and if it covers one direction or more. Once upon a time, me and a player made up rules for a Captain America type character (Captain Alderaan, lol), and since his shield was a physical object it required the use of the Melee Weapon Parry and Thrown Weapon skills (and could be specialized as "Shields").

My opinion is that making a similar test to Brawling Parry would make this essentially useless, as a success on this allows a bonus to resist the damage, but a success on a dodge avoids all damage, so who'd bother with a shield if they can dodge.
My thoughts originally were that you'd make a test like the normal attack rolls, so.

point-blank range is a Very Easy task.
short range is an Easy task.
medium range is a Moderate task.
long range is a Difficult task.

However, this makes it easier to defend the nearer the target is. A more sensible version would be to reverse this, so it's easier to get your shield in the way of attacks from further away.
So . . .
point-blank range is a Difficult task.
short range is a Moderate task.
medium range is an Easy task.
long range is a Very Easy task.

Hmm, that can work. But is "Personal Shields" the skill used to perform these checks? And would this skill count for physical shields, too?

Also, I can see an additional bit of potential rulage for this skill. While Dodge negates Damage all together and has the disadvantage of not allowing another action that round (if done as a reaction in combat, and not declaring additional actions beforehand) like attacking back (counterattack?), or reducing consecutive actions that round by -1D or more (depending on how many actions that character takes), the Personal Shields skill could be exempt from this if using an off-hand and using a light weapon in the character's main hand (knife, sword, pistol, etc). If you make the check, you get the shield set in place and receive the bonus to resist damage, while being able to attack back with the their other hand (which you can't do with Dodge, right?). And if you don't make the check, you don't get the bonus, but can still attack back if you're still standing after being hit.

It comes down to what the character desires more, no damage but no counterattack, or better damage resistance to soak it while being able to counterattack. Options. I like that.