I got caught putting the ring in Brand-Shei's pocket. Paid the bounty, and ran back to where Brynjolf (spelling?) was still standing. He said something about how he shouldn't have expected much from me, but then the story progressed as normal. Now I'm head of the Thieve's Guild, and Brand-Shei is still manning his usual post at the marketplace....although I still haven't gotten around to doing the quest about his past.
Sigh. I also wish I had known this. I want him out of jail now. For me, he has been in there for months now. I felt like crap doing it and feel more like crap. For those wondering, you can complete his quest even with him in jail. Takes a little effort to be able to click on him behind those bars though. Please Bethesda let him out. He has served his time and was not even guilty. Oh Brand Shei, I am so sorry. lol