If a character is turned into a Toad while battling it out with another character at the Crown of Command (Toadify Spell), and therefore loses all Objects & Followers, can the other player pick them up, or are they lost forever?  I question this because since both characters are already on the COC, no one will be moving into that space, and you generally can't pick anything up from a space until after you move.  

Triple "A" said:

I was under the impression it is forbidden to cast spells on characters in the Inner Region (excluding the Command Spell) so the point seems moot.

You can cast spells on characters in the Inner Region. It's the creatures there that are immune to magic.

As for the OP:

I'd say yes, if  you're encountering the space. In which case you won't attack the character on his 1st turn as a toad.Since you can't encounter both the space and another character on the same turn.

Triple "A" said:

The character who is turned into a Toad must ditch all of his Objects, Followers & gold onto the Crown of Command. The Toad & the other character resolve the battle as normal and the Toad probably loses a life! When two or more characters are on the Crown of Command, they must encounter each other. Therefore all the items ditched on the Crown of Command remain there!

Ell.

If the toaded character is killed or moves away, the winner cannot acquire the lost objects without re-entering the space - correct?  Which would require moving out of the Inner Region completely and then re-entering (which, if you're alone on the COC is it really worth it)?  And if another character made it to the COC, they would have to encounter the character already there.  So essentially all objects / followers lost through toading on the COC would not be available to anyone.  

Okay.  Thanks for the advice.

Triple "A" said:

When there is only one Character on the Crown of Command, he's not forced to encounter any Characters but he casts the Command Spell as the Rulebook tells you at page 20.

But I think this means that the Character encounters the CoC space every turn (but can't move); the space has no instructions on it in 4th edition, but used to have in 2nd. So, the CoC should be seen as a non-draw card space, where Characters encounter face-up cards before following the instructions for the space.

I think this is logical and coherent to the rules, a little bit more than saying that ditched cards on CoC are lost forever.

 I think The_Warlock has correct on this. Rules says you obtain object/followers due to an encounter, and as I understand you still encounter the CoC even if you dont move, hence you can pick up items there before casting the CoC spell as long you're the only one there.

If there is no character on the COC space, you may pick up every object if you want, before casting the coc spell.

This rule is already here for years!

Also John goodenough has allowed that you may cast spells like temporal warp on the coc space.

You can also use * land on abilities *there with the thief and the merchant