Hello Sarah,
I wonder if you could give us a brief synopsis about the course you are doing at university?Does it also cover Old or Middle English or what. If you have time to reply, this may be of interest to others who don't or can't attend classes in Old Norse.
Anyhow, on with the translation, rather a free one again:
 
Kømr nú þessi fregn fyrir Hrólf konung ok kappa hans upp í kastalann,
News of this now came to King Hrolf and his champions up in the castle,
 
at maðr mikilúðligr sé kominn til hallarinnar ok hafi drepit einn hirðmann hans,
that a man of imposing appearance had come to the hall and killed one of his retainers,
 
ok vildu þeir láta drepa manninn. Hrólf konungr spurðisk eptir,
and they wanted to have the man killed.  Kinf Hrolf enquired about this,
 
hvárt hirðmaðrinn hefði verit saklauss drepinn. 'Ðví var næsta' sogðu þeir.
had the retainer who was killed, been guiltless? 'It was very close to this' they said
 
Kómusk þá  fyrir Hrólf konung öll sannindi hér um. Hrólf konungr sagði þat skyldu fjarri, at drepa skyldi mannin -
Then all the truth concerning this came before the king. King Hrolf said that they should be far from this, that the man should be killed -
 
'Hafi þit hér illan vanda upp tekit, at berja saklausa menn beinum; er mér í því óvirðing,
You two have taken up a bad practice, to strike innocent men with bones; there is disgrace for me in this,
 
en yðr stórr skömm, at gøra slíkt. Hefi ek jafnan rœtt um þetta aðr,
and great shame on you, to do such a thing. I have always spoken about this before,
 
ok hafi þit at þessu engan gaum gefit, ok hygg ek at þessi maðr muni ekki alllítill fyrir sér,
and you have given no heed to this, and I think that this man will not be a weakling
 
er þér hafið nú á leitat; ok kallið hann til mín svá at ek viti hverr hann er.'
who you have attacked; and now call him to me so that I may know who he is'.