I thought it was his right hand index (pointer) finger (one closest to the thumb).
And for the Sauron thing... I always imagined Sauron lying on the floor, having been defeated by Elendil and Ereinion. Isildur, having the hilt of Narsil in his hand with only about 1/4 of the blade left simply took a downward stroke onto the finger the ring was on. No bending it back and then cutting it off. [img]smilies/smile.gif[/img]
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Son of Isildur.
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