From Grace's and Alan's translations, I see some corrections that need to be made to my translation below.  Specifically:

Sauðeyjum = sheep islands

Veiðistöð sú = that fishing-station

There are more corrections needed, of course....

4. kafli

Þórólfur vó Hall

Ingjaldur hét maður.

A man was named Ingjald.

 

Hann bjó í Sauðeyjum.

He lived in the Southern-Islands.

 

Þær liggja á Breiðafirði.

They lie in Broad-fiord.

 

Hann var kallaður Sauðeyjargoði.

He was called a Southern-Islands-heathen-priest.

 

Hann var auðigur maður og mikill fyrir sér.

He was a wealthy man and strong.  (Z13 mikill fyrir sér = strong)

 

Hallur hét bróðir hans.

His brother was named Hall.

Hann var mikill maður og efnilegur.

He was a large man and promising.

 

Hann var félítill maður.

 

He was a poor man.

 

Engi var hann nytjungur kallaður af flestum mönnum.

He was not called a worthy man by most people.

 

Ekki voru þeir bræður samþykkir oftast.

The brothers were not often at peace.  (Not at peace with each other? Not at peace with other people?  Or both?)

 

Þótti Ingjaldi Hallur lítt vilja sig semja í sið dugandi manna en Halli þótti Ingjaldur lítt vilja sitt ráð hefja til þroska.

Hall thought Ingjald little/wretchedly wanted himself (or bear good will) agree on in customs/habit a doughty man and (but) Ingjald thought hall little/wretchedly wanted himself (or bear good will) advice raise/begin to maturity.

 

Veiðistöð sú liggur á Breiðafirði er Bjarneyjar heita.

His fishing-place lies in Broad-Fiord where (it) is called Bear-Islands.

 

Þær eyjar eru margar saman og voru mjög gagnauðgar.

These islands were in groups and were very productive.  (Z mörgum mönnum saman, in groups)

 

Í þann tíma sóttu menn þangað mjög til veiðifangs.

In this time men came-to there often for fishing.

 

Var og þar fjölmennt mjög öllum misserum.

(It) was also crowded there all the year round.  (Z misseri - öllum misserum, all the year round)

 

Mikið þótti spökum mönnum undir því að menn ættu gott saman í útverjum.

It seemed a lot to wise men under because men have good together in the outlying fishing station. 

 

Var það þá mælt að mönnum yrði ógæfra um veiðifang ef missáttir yrðu.

It was at-that-time said to men become (ógæfra?  ungentle?) about a catch if disagreeing occurs.

 

Gáfu og flestir menn að því góðan gaum.

Most men therefore also paid attention to good-will.  (Z gaumr - gefa gaum at e-u, to pay attention to)

 

Það er sagt eitthvert sumar að Hallur bróðir Ingjalds Sauðeyjargoða kom í Bjarneyjar og ætlaði til fangs.

It is said one summer that Hall, brother of Ingjald South-Islands-Heathen-Priest came to (the) Bear-Islands and intended to fish.

 

Hann tók sér skipan með þeim manni er Þórólfur hét.

He himself took the ship wit

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