Not correct. Assuming there's no new CBA, if they cut Moulds, ALL of his unamortized bonus hits the 2006 cap, regardless of when he's cut. With a new CBA, they'd have to wait until after June 1st.
So the Bills save anywhere from $4.5-5.5M with his release as things stand right now.
This is the last year of Fletcher's contract, so unless he agreed to an extension, the Bills can't do much with his contract. The Bills can and SHOULD do this with other players (Schobel, Evans, etc.) though.
I agree. He's not worth $7M in new, i.e. Ralph's, money. Hell I don't even know if he's worth $4.3M in new money, which is what the Bills are offering him. And if there's no new CBA, there's no way he gets more than $2.5M this year from another team, and he's got a 1/32 chance of picking a SB-winning one. Good luck, Eric.