Here´s my translation, together with some suggested alternate readings for your consideration.

Grace, I will be “out of the office” from 1-14 January so I would be grateful if you could suspend activity until after that time.

Thanks Brian for your assistance throughout, especially with the curlier passages in the text.

Seasons Greetings to all.

Kveðja

Alan

Það var á einu hausti að í því sama holti lét Ólafur bæ reisa og af þeim
That was during one autumn that, in that same wood, Ólafr caused to erect a farmstead and from those

viðum er þar voru höggnir í skóginum en sumt hafði hann af rekaströndum.
timbers which were hewn there in the forest but some (of the timber) he got (hafa, Z8) from “drift-strands.” (shores littered with driftwood).

Þessi bær var risulegur. Húsin voru auð (auðr not to be confused with auðr)  um veturinn.
This farmstead was imposing. The farm-buildings were uninhabited during the-winter.

Um vorið eftir fór Ólafur þangað byggðum og lét áður saman reka fé sitt og
During the-spring after, Ólafr journeyed thither for habitation (bygð) (ie to take up residence) and caused before(hand) to drive together (herd) his stock and

var það mikill fjöldi orðinn því að engi maður var þá auðgari að kvikfé í
that (ie the herd of stock) was (had) become a great multitude because no man was then richer (compar of auðigr) as regards live-stock in

Breiðafirði. Ólafur sendir nú orð föður sínum að hann stæði (past subj of standa?) úti og sæi (sjá) ferð hans
Breiðarfjörðr. Ólaf sends now word(s) to his father that he should-stand outside and should-see his (ie Ólafr’s) journey

þá er hann fór á þenna nýja bæ og hefði orðheill fyrir. Höskuldur kvað svo vera skyldu.
when he moved to this new farmstead and (he) should-bring (hafa, Z6) good-omen for (the benefit of it, fyrir, Z.ii.9). Höskuldr declared (it) should be so.

Ólafur skipar nú til, lætur reka undan fram sauðfé það er skjarrast var. Þá
Ólafr now made ready (see skipa til e-s, Z6), causes to drive up at-the-front those sheep (grammatically singular) which were shyest. Then

fór búsmali þar næst. Síðan voru rekin geldneyti. Klyfjahross fóru í síðara
milch-cattle (sheep?) went there next. After-that were driven barren-cattle. Packhorses went in (the) latter

lagi. Svo var skipað mönnum með fé þessu að það skyldi engan krók rísta.
place (ie brought up the rear). (It) was so arranged with men (persons) (ie the men were so placed) among those sheep that they (ie the sheep, grammatically sg) should cut (rísta) no (engan) curve (krókr) (ie should not wander from the straight and narrow).

Var þá ferðarbroddurinn kominn á þenna bæ hinn nýja er Ólafur reið úr garði af
Then (ie at that point in time) was (had) the van (ie the front of the procession) arrived at this farmstead, the new (one) , when Ólafr rode out-of (the) yard from

Goddastöðum og var hvergi hlið í milli. Höskuldur stóð úti með heimamenn sína.
Goddastaðir (ie the old farmstead) and (there) was nowhere a gap (in the traffic) in between. Höskuldr stood outside with his servents.

Þá mælti Höskuldur að Ólafur son hans skyldi þar velkominn og með tíma á
Then Ólafr spoke that Ólafr, his son, should (be) welcome and (be) with prosperity there in

þenna hinn nýja bólstað "og nær er það mínu hugboði að þetta gangi eftir að
this the new homstead “and that is nearly my anticipation that this (ie the prosperity et al) should-go after (follow, come to pass, ganga eptir), (such) that

lengi sé (vera) hans nafn uppi."
for-a-long-time his name should-be up (ie live on, see vera uppi, under uppi).”

Jórunn húsfreyja segir: "Hefir ambáttarson sjá auð til þess að uppi sé hans nafn."
Jórunn (his) wife says: “This concubine’s son has (the) wealth to that (end) that his name should-be up (live on).”

Það var mjög jafnskjótt að húskarlar höfðu ofan tekið klyfjar af hrossum og
That was at-the-very-same-moment that (the) menservants had taken down (the) packs from (the) horses and

þá reið Ólafur í garð.
when Ólafr rode into (the) yard.

Þá tekur hann til orða: "Nú skal mönnum skeyta forvitni um það er jafnan
Then he takes to words (starts a speech): “Now shall (the) curiosity of men be-satisfied about that which constantly

hefir verið um rætt (roeða, pp)  í vetur hvað sjá bær skal heita. Hann skal heita í Hjarðarholti."
has been spoken-about in (the) winter, what this farmstead shall be-called. It shall be called Hjarðaholt.” (Herd´s-, Flock´s-wood, gen sg of hjörð + holt, ie reference to the cattle gathering in the clearing hewn in the wood)

Þetta þótti mönnum vel til fundið af þeim atburðum er þar höfðu orðið.
This seemed to people well brought-forward (nominated, chosen) from those events which had happened there.

Ólafur setur nú bú saman í Hjarðarholti. Það varð brátt risulegt. Skorti þar og engi hlut.
Ólafr sets up the farm in Hjarðaholt. That soon became imposing. There also was-want of no thing.

Óxu (vaxa) nú mjög metorð Ólafs. Báru til þess margir hlutir.
Ólafr’s esteem now grew greatly. Many things gave-rise to that.

Var Ólafur manna vinsælstur því að það er hann skipti sér af um mál manna þá
Ólafr was (the) most-popular of men for that (reason) that when he got himself involved concerning (the) affairs of men then

undu (una) allir vel við sinn hlut. Faðir hans hélt (halda) honum mjög til virðingar.
all (everyone) were-well-content (see una, Z3) with their lot. His father was-much-bent on (gaining) honour for him.

Ólafi var og mikil efling að tengdum við Mýramenn. Ólafur þótti göfgastur sona Höskulds.
A great increase-in-(political)-strength was also (given) to Ólafr through affinity (connection) with (the) men (persons) of Mýrar. Ólafr was-thought (the) noblest of Höskuldr’s sons.