In the scene where Forrest loses the braces, he has trouble running properly with the braces; he has to keep his legs stiff and swing his hips around. In an earlier scene, though, the one where he and Jenny play in the tree, Forrest can be seen running to the tree like a normal kid.
Actually, the braces were rigged with squibs (miniature explosive charges), and the joints were designed to break apart when the squibs were triggered (probably by some special effects tech off camera using a remote control device of some sort).
Miniature explosives on a running childs legs!?!? I don't know if that's illegal or not, but if that were my child , I'd be just a leetle nervous about that. It just seems to be a little on the dangerous side if you ask me. They must have done it some other way.