Gunnar gaf honum fingurgull og gekk síðan til manna sinna og sagði þeim að
herskip lágu öðrum megin nessins
Gunnar gave him finger-gold (a ring) and went (back) afterwards to his men and told them (that)
warships lay on the other side of the headland
 
"og vita þeir allt til vor. Tökum vér nú
vopn vor og búumst við öllu vel og skjótt því að nú er til fjár að vinna."
"and they know all about us - let us now take (up) our weapons and prepare ourselves all well (fully)  and quickly there is now treasure to be won/gained

Síðan bjuggust þeir við og þá er þeir voru búnir sjá þeir að skipin fara að
þeim.
Then they made themselves ready and (just) as they were ready they saw ships approaching them
 
 Tekst nú orusta með þeim og berjast þeir lengi og verður mannfall
mikið. Gunnar vó margan mann.
A battle got under way with them and they fought long and with great loss (of life)
Gunnar killed many man (? singular - many a man)
 
Þeir Hallgrímur hljópu á skip til Gunnars.
Gunnar sneri í mót Hallgrími. Hallgrímur lagði til hans með atgeirinum.
Those Hallgrims (H. and his kin) leapt onto Gunnar's ship Gunnar turned to face Hallgrim.
Hallgrim thrust at him with his Halberd/spear
 
Slá ein var um þvert skipið og hljóp Gunnar aftur yfir öfugur.
There lay a boom across the ship (ein - one particular - a certain - were there two)
backwards leapt Gunnar over it
 
Skjöldur Gunnars
var fyrir framan slána og lagði Hallgrímur í hann og í gegnum og svo í
slána.
Gunnar's shield was in front of the boom and Hallgrim thrust at him (with that Hallberð) and it went through and into the boom ( right ! and through the shield)
 
Gunnar hjó á hönd Hallgrími og lamdist handleggurinn en sverðið beit
ekki. Féll þá niður atgeirinn.
Gunnar slashed at Hallgrim's arm and lamed it, but the sword did not bite (cut).
The halberð then fell down
 
Gunnar tók atgeirinn og lagði í gegnum
Hallgrím. Gunnar bar atgeirinn jafnan síðan.
Gunnar took (up) the halberd and thrust it through Hallgrim. Gunnar carried it always with
him (there after) [ possibly for a talisman]
 
Þeir börðust nafnar og var nær
hvorum vænna horfið. Þá kom Gunnar að og hjó Kolskegg banahögg.
this next bit is not abundantly clear -
They were still fighting  (this must mean those two Kolskeggs) and it was near (a close thing) who was likely to win (?)/ gain victory  until Gunnar  gave (that other) Kolskegg  his death blow.
 
The story does not actually state that the two Kolskeggs - in the beginning of this paragraph were the ones fighting but it is safe to assume  Hallgrim is well out of it now
 
Eftir það
beiddu víkingar sér griða. Gunnar lét þess kost.
After that the Vikings asked ( were pleading?) for peace for themselves, and Gunnar granted it
 
Hann lét þá kanna valinn og
taka fé það er dauðir menn höfðu átt en hann gaf hinum vopn sín og klæði, er
hann gaf grið, og bað þá fara til fósturjarða sinna.
He allowed then (his men) to search the slain and to take from those dead the goods they had but he gave - to those whom he granted peace - their weapons and clothing and bade them return to their (own) homelands
 
 Þeir héldu í braut en Gunnar tók fé allt það er eftir var.
They  held (course)  away  and Gunnar took (up) all that was left behind

Tófi kom að Gunnari eftir bardagann og bauð að fylgja honum til fjár þess er
víkingar höfðu fólgið,
Tofi came to Gunnar after the battle and offered to lead/take him to the treasure that the Vikings had buried/stashed
 
kvað það vera bæði meira og betra en hitt er þeir
höfðu áður fengið.
declared that is was more and better than they had already taken/gained
 
Gunnar kveðst það vilja. Gekk hann á land með Tófa. Fór
Tófi fyrir til skógar en Gunnar eftir.
Gunnar  declared of himself that he wanted this He went ashore with Tofi
Tofi went into a wood and Gunnar (following ) after 
 
Þeir komu að þar sem viður var borinn
saman mikill. Tófi segir að þar var féið undir.
They came there to (a place where) wood had been pikled up (gathered together)
Tofi said there was treasure underneath.
 
Ruddu þeir þá af viðinum og
fundu undir bæði gull og silfur, klæði og vopn góð. Þeir bera fé þetta til
skipa.
They then cleared the wood away and found underneath both gold and silver - clothes and good weapons. They carry this treasure to the ships
 
Gunnar spurði Tófa hverju er hann vildi að hann launaði honum.
Gubbar asked Tofi how he wanted to be rewarded

Tófi svaraði: "Eg er danskur maður að ætt og vildi eg að þú flyttir mig til
frænda minna."
Tofi replied " I am a Dane by kinship and I wish that you would (use of subj.) carry me back
to my kinsfolk"

Gunnar spurði hví hann væri í Austurvegi.
Gunnar asked how he came to be in the East - in the Baltic (Well he's far from home)

"Eg var tekinn af víkingum," segir Tófi, "og var mér skotið hér á land í
Eysýslu og hefi eg hér verið síðan."
"I was captured (kidnapped) by the Vikings and was put (?quickly) ashore on Osel
and have been here (ever) since
 
 
að þu flyttr - I thought this was use of the subjunctive and the að served the same service as the ut in Latin where they do not use the infinitive as we say - I ask - I strive to - in Latin they ask - or even command THAT - something should happen
Does this work the same with Old Norse
and would the mnemonic still work with O/N
with ask command advise and strive by ut (or in O/N að) translate that infinitive
 
Only a thought and I would be grateful for any corrections or feedback that
may be forthcoming
Kveðja
Patricia
For Alan  - I have just seen as I was finishing this offering - that you say they - the namesake - I could not see that - but I bet you have the right of it - it clearly means the two Kolskeggs (k1 and k2) would you please say how you came by this - intriguing