> En hann var svo búinn jafnan að hann hafði skarlatskyrtil
> rauðan og gráfeld ystan og bjarnskinnshúfu á höfði, sverð
> í hendi.

> And/but he was so equally prepared that he had a red
> scarlet-clothes and a gray-cloak (ystan?) and a
> bear-skin-hat on (his) head, a sword in hand.

> But he was always thus that he had a red scarlet-tunic and
> grey cloak outermost? and a bear-skin cap on (his) head,
> sword in hand.

> But he was so attired (búa, Z2) always that he had a red
> scarlet-kirtle (tunic) and outer? (masc acc sg of yztr ?)
> grey-cloak and bearskin-cap on (his) head, a sword in
> hand.

Yes, <ystan> is the modern spelling of <yztan> 'outermost':
'a scarlet tunic and outermost [i.e., over the tunic] a grey
cloak'.

> Það var mikið vopn og gott, tannhjölt að.

> That was a large and good weapon, with a hilt of walrus
> tusk.

> It was a large and good weapon, with a hilt of walrus
> tusk.

> That was a great weapon and good, tusk-hilted or a
> tusk-hilt upon (it) (pp or noun + at?).

The latter, so far as I can tell.

> Síðan bar Geirmundur fé undir Þorgerði til þess að hann
> næði ráðinu.

> Then Geirmund bribed Thorgerd to that, that he got the
> agreement. (Z. bera 5 - bera fé á e-n, to bribe one)

> Afterwards Geirmund brought money in turn to Thorgerd for
> this reason that he ?? the plan.

> After-that Geirmundr bore money under (the table)
> toÞorgerðr (ie bribed her, cf bera fé á e-n, Z6) to that
> (end) that (ie in order that or ,maybe, until) he
> would-get (subj of ná) the-match (marriage, ráð, Z8).

'In order that'.

> Hún tók við fénu því að eigi var smám fram lagt.

> She received the wealth because (she) was not together
> from placed (???).

> She accepted the money because it was not a small amount
> put forward.

> She accepted the-money because (it) was not smally
> (sparingly, in small (amounts), smár, adj in dative as
> adv?) put forward (advanced, proffered).

<Smám> seems to be used quite generally in the adverbial
sense 'bit by bit' -- as you say, 'in small amounts'. Here,
though, we seem to be dealing with a single occasion, so
'stintingly' (or 'small-ly', if it existed) would seem to be
about right. To keep the litotes one might say 'because no
small [amount] was offered'.

> Hún segir og sína ætlan að dóttir þeirra muni eigi betur
> verða gefin "því að hann er garpur mikill, auðigur og
> stórlátur."

> She says also her intention that their daughter would not
> be better given-in-matrimony "because he is a great
> dauntless man, wealthy and haughty."

> She says also her expectation that their daughter would
> not be better married, “because he is a very bold man,
> wealthy and proud.”

> She says also her opinion (Z1, fits the context better
> here, I think) that there daughter would-not become better
> given (in marriage) “because he is a great dauntless-man,
> wealthy and munificent.”

I agree about 'opinion'. I think that <muni> is probably as
in Z2: 'that their daughter would surely not [make a better
match]'.

> Þá svarar Ólafur: "Eigi skal þetta gera í móti þér heldur
> en annað þótt eg væri fúsari að gifta Þuríði öðrum manni."

> Olaf then answers: "(I) shall not do this against you
> rather than another even-though I would be more willing to
> marry Thurd to another man."

> Then Olaf answers, “This shall not be done against you(r
> wishes) rather than another although I would be more eager
> to marry Thurid to another man.”

> Then Ólafr answers: “(I) shall not decide (judge, see
> göra, Z10?) this (I think this is the object of göra, not
> the subject) against you more than (any) other (matter)
> even-if I were more-eager to marry Þuriðr to another man.”

I take it as <þetta ... heldur en annað>: 'No more shall
this be done against you[r will] than anything else. And
<þótt> here must be 'although', as Grace and Rob have it.

> Hann þakkaði henni sín orð og tillög og skörungsskap.
> He thanked her (for) report and help and nobleness.
> He thanked her for her words and help and nobleness.
> He thanked her for her (?) words and help and nobleness.

Yes, 'her words', here in the acc. plur. as the thing for
which she is being thanked.

Brian