He wasn't released, at all. He was sold back to Molde for an undisclosed fee. Many are assuming that was pennies, but the Southampton Daily Echo (we'd expect the Argus to know close to the truth) reported it at the time, as 'close to the figure they'd paid'.
If you'd read this http://www.northstandchat.com/content.php?647-Norwegian-saviour-or-defensive-Paddy-McCourt-Welcome-Vegard-Forren
..you'd know he's fresh from pre-season at Rosenborg. When he last played a MATCH - who knows...
Maybe 1860 are not down to two senior centre backs?
Don't believe so. The move clearly didn't work out (he never played a first team game) but I'm pretty sure Saints recouped some of their money.