Sæll Haukur!
 
This was definitely more tricky but I resisted the temptation to have a look at others' translations before posting this!  There was one bit I couldn´t make head nor tail of, but never mind...
 
Þorbjörn hét maðr, hann var kallaðr Götuskeggr.
There was a man named Thorbjorn, he was called a Street-beard.
 
Hann bjó i Austrey í Færeyjum.  Guðrún hét kona hans.
He lived on Eastern Island in the Faroes.  His wife was called Guthrun.
 
Þau áttu tvá sonu, hét Þorlákr in ellri, en Þrándr inn yngri.
They had two sons, the elder was called Thorlakr and the younger Thrandr.
 
Þeir váru efniligir menn.  Þorlákr var bæði mikkill ok sterkr,
They were promising men.  Thorlakr was both large and strong,
 
Þrándr var ok með því móti þá er hann þroskaðisk, en miseldri þeira bræðra var mikit.
OK.  I lost the plot here!  I decided some of it must be idiomatic use of language - good excuse!!  I worked out that því is dative singular of sá [this]
þá er hann þroskaðisk - is when he prospered??
mis - seems to be a suffix like the English mis-
eldri - can be the comparative of gamall!!
þeira bræðra var mikit is - of their brothers was great??
 
Þrándr var rauðr á hár ok freknóttr í andliti, fríðr sýnum.
Thrandr was a redhead with a freckled face, pleasing to the eye.
 
Þorbjörn var auðigr maðr ok var þá gamall, er þetta var tíðenda.
Thorbjorn was a wealthy man and old at the time when this was news.
 
Or, more idiomatically,
Thorbjorn was an old and wealthy man when this took place.
 
Þorlákr kvændisk þar í eyjunum ok var þó heima með föður sínum í Götu.
Thorlakr got married there on the islands and remained at home with his father in the Street.
 
Ok bráðliga er Þorlákr var kvæntr andaðisk Þorbjörn Götuskeggr,
And soon after Thorlakr was married, Thorbjorn Street-Beard died
 
ok var hann heygðr ok út borinn at fornum sið,
and he was buried and laid out according to the ancient custom
 
því at þá váru heiðnar allar Færeyar.
because at that time all the Faroese were heathens [lit. of heathendom]
 
Synir hans skiptu arfi með sér,
His sons shared the inheritance between themselves
 
ok vildi hvártveggi hafa heimbólit í Götu,
and wanted somehow to have their home in the Street
 
því at þat var in mesta görsimi.  Þeir lögðu hluti á, ok hlaut Þrándr.
because most of the valuables were there [lit. that was the most treasure]  They laid things over him and Thrandr grieved.
 
I'm looking forward to seeing the proper translation, especially the tricky bits!
 
Bye for now,
Sarah.