I wouldn't clamp the values, as suggested by the pseudocode, because the curvature artifacts do not necessarily correspond to high-curvature areas. Better cures for the problem include:
Consider smoothing the DEM before computing the curvature. This would slightly reduce most curvatures but might give reasonable curvature values at all locations. Smoothing the DEM can be done with local medians or means.
Find a robust way to estimate curvature. (You won't find this in any Arc* software, but with the availability of general-purpose tools like
R, this is a feasible recommendation.) In general, curvature is estimated by fitting a quadratic (or some specialized low-order polynomial) in each neighborhood. The usual fitting method is least-squares, which can be sensitive to slight local variations. By expanding the neighborhood and using a fitting method that downweights outlying residuals (such as IWLS), you might be able to get representative and accurate curvature estimates everywhere.
Replace the extreme curvature values with NoData. This is still a draconian measure, but would be appropriate if the extreme values are really artifacts of the interpolation (and don't, therefore, reflect truly high curvatures).
Choose an interpolation method that produces smoother surfaces!
The 'map algebra' syntax for replacing values with NoData uses the SetNull command, as in
SetNull(Abs([Curvature grid]) > 10*Abs(m), [Curvature grid])
By the way, m should not be the median curvature: the median often will be close to zero and won't reflect typical large curvatures (positive or negative) A large multiple of the median absolute curvature might be a reasonable choice. Better yet, examine the histogram of curvatures to find where to cut off the values.
If the SetNull approach pokes too many NoData holes in the grid, think about whether the curvature grid should be smoothly varying. If so, and if those holes tend to be isolated (or in narrow stripes--which would be a strong indicator that a poor interpolator was used), you can fill them by computing a focal mean and pasting the mean values over the holes. The pasting is done with the conditional operator, as in
Con(IsNull([Modified curvature grid]), [Focal mean grid], [Modified curvature grid])
Note the use of IsNull to detect the NoData cells.