These were the original bounty conditions. After consulting with core Bitcoin devs, it turns out "into Bitcoin git master" was a bad idea. What was shipped in 0.8.6 was correct and needed for Bitcoin users as quick as possible. There is a desire to be far more deliberate in testing the code that goes into git master for what will eventually become Bitcoin 0.9. For this reason we are exercising the "These terms may be changed at any time for any or no reason." clause.
The final term will be changed, s/merged into Bitcoin git master/merged into Bitcoin/.
The apportionment of the bounty to split to different contributors involved in fixing the issue will be the decision of Bitcoin devs including myself, Gavin, laanwj and others. Depending on the country where the various contributors are located tax forms may be required to make payments. If they refuse to do required tax forms then they may opt for their portion to be instead directed at a Bitcoin-accepting charitable organization like the FSF or EFF.
So did this bounty ever get paid? Who won it and when?