>varg(r) is a term which means both a dangerous wolf and an outlaw/outcast,
>which referred to outlaws living as wolves and being just as dangerous. on
>occasion, it's also used to refer to a shape-shifter in the form of a wolf,
>as this concept overlaps with that of an outlaw living as a wolf. for the
>best example, check out the portion of Völsunga saga where Sigurð and
>Sinfjötli are living as wolves.
Varg has a rich set of etymological entries. An interesting question is what
came first: the meaning as criminal or the meaning as wolf? An interesting
idea is also the proposal that "varg" may be etymologically related to a
German word that means "to strangle".
P.S. Why don't you give us the answer, if you have the Volsunga saga within
reach: does it say vargr or ulfr?