Second bug not just a forgery issue
"He would notice that forgery issues to *NOT* qualify for the security bounty. FAIL!"
Right, and for this reason, I don't think DJB will award the $1000 to Kevin Day. However, the bug that I pointed out is an actual exploitable bug in how djbdns builds DNS response packets, which I believe is covered by DJB's security guarantee. You can read my BugTraq posting for more details (linked within the article).