V3.8.4 IS SAVE GAME COMPATIBLE / NEW GAME IS RECOMMENDED FOR FULL FIXES / v3.8.4 IS ONLY COMPATIBLE WITH WARBAND 1.165. Apply them to the Prophesy of Pendor v3.8 folder found in your Warband module folder. This latest patch contains all previous patches. Find out where he is (it's mentioned in the quest info), find the jailor, talk to him and demand his keys, knock him out when he refuses, then get in and talk to the lord.You can either tell him to help you fight off the remaining guards (he'll follow your commands) or tell him to stay put, in which case he'll wait patiently by the door (which is not necessarily safer, as he might be left exposed to archers etc). I don't think it's at all possible to pay for his release, you have to break him out of prison.