I decided to do some research and give it a try. It wasn't difficult, just shred the newspaper and throw it in the coop. It was free. It was easy.....but how did it work?
Using shredded newspaper in the chicken coop
While newspaper is generally 'free' (what else are you gonna do with it after you read it?) the shredder certainly isn't and depending on what size coop you're filling you do run the risk of burning up a shredder. To prevent this I shredded paper for about 5 minutes a few times a day till I got enough paper for my coop.
I only used the regular newspaper part, not the shiny ad papers. I also used some regular shredded paper like bills and such.
I chose the d'Uccle coop for this experiment. It's not terribly large which I thought was a good idea in case it failed miserably. I covered the coop floor with about 2" of shredded paper. As the days went by it packed down and I would add more from time to time.
The chickens had no problems walking in or turning the paper coop bedding. The coop didn't smell and when the paper litter got wet, it quickly dried out.
I did see them eat a piece or two of shredded paper, but didn't notice any problems from it.