I actually did my own translation this time; I've simply
given it plus some additional notes on the most confusing
bits.

> Hvalseyju
> Hval's island
> whale island

Literally Whale's Island, but its modern name is Whalsay.

> Þau Hólmgǫngu-Hani kvǭmu at landi við Hvalsey í
> Hjaltlandi, ok lǫgðu þar til hafnar.

> They, Dueler Han (and the others) landed at Hvalsey in the
> Shetlands, and laid at anchor there at a harbor.

> They, Duel Han (and company) came ashore at Whale Island
> in the Shetlands and sailed there to harbor.

Duel-Hani and his companions landed at Hvalsey in the
Shetlands and lay there at anchor in harbor.

> Þar vas skammt á land upp jarl sá, es Villarðr es nefndr.

> There was scarcely up on land the earl, who is named
> Willard.

> There was a short way up on land, that earl who was named
> Villard.

A short way inland was the jarl who is named Villarð.

> En es hann spurði, at víkingar vǭru þar komnir við land,
> þá sendi hann menn sína á fund þeira þess erendis at vita,
> hvárz þeir vildi þar friðland hafa eða hernað.

> When he found out, that Vikings had come there on land,
> then he sent his men to meet them that mission to find
> out, whether they wanted there to have a friendly country
> or plundering.

> And when he learned that Vikings had come ashore there,
> then he sent his men to a meeting with them (with) this
> errand: to know whether they wanted to have there a place
> of retreat or plunder.

And when he learned that vikings had landed there, he sent
his men to meet them to that purpose, to find out whether
they wanted to have a peaceful retreat there or raiding.

> En er sendimenn vǭru komnir á fund Hólmgǫngu-Hana með sín
> erendi, þá sagði hann, at þeir myndi þar eigi herja,
> sagði, at þeim vas engi nauðsyn til at herja þar ok fara
> herskildi, sagði, at þar vas land ekki auðigt.

> When the messengers had come to meet Dueler Han with their
> mission, he told them, that they would not plunder there,
> said that they was no necessity to plunder there and
> harry, said that there (the) land was not wealthy.

> And when (the) messengers had come to meet Duel Han with
> their errand, then he said that they would not harry
> there, said that for them was no need to plunder there and
> harry on land, said that there was not a wealthy land.

And when [the] messengers had come to meet Duel-Hani with
their mission, he said that they would not harry there, said
that they had no need to harry there and do battle, [and]
said that the land there was not wealthy.

> Sagði hann òk, at hann væri kominn með Artú Dítússon, mann
> írskan, ok at sjá góði maðr vissi hversu menn mættu eyða
> þat norrǿna herskipit, es heitir Dauðastjarna.

> He also said, that he had come with R2, son of D2, an
> Irish man, and that the good man knew how men were able to
> destroy that Norwegian warship, which is called
> Death-star.

> He also said that he had come with R2 D2’s son, an Irish
> man, and that good man knew how men might destroy that
> Norse warship, which is called Death Star.

He also said that he had come with Artú Dítússon, an
Irishman, and that that good man knew how men might destroy
the Norwegian warship that is called Deathstar.

> Sendimenn fara aptr til jarlsins ok sǫgðu honum erendislok
> sín.

> (The) messengers go back to the earl and told him the
> mission-end.

> (The) messengers go back to the earl and told him the
> result of their errand.

[The] messengers return to the jarl and told him [the]
outcome of their mission.

> En es jarlinn varð þess varr, at þessir víkingar vǭru
> fjándmenn Falfaðins konungs ok vildu spilla ríki hans, þá
> gladdisk hann, því at hann hataði Falfaðin ok hermenn
> hans, þeir es opt herjuðu Hjaltland.

> When the earl learned that, that these Vikings were King
> Palpatine's enemies and would destroy his kingdom, then he
> became glad, because he hated Palpatine and his warriors,
> they who often harried the Shetlands.

> And when the earl became aware of this, that these Vikings
> were enemies of King Palpatine and wanted to destroy his
> kingdom, then he was happy because he hated Palpatine and
> his warriors, they who often harried in the Shetlands.

And when the jarl became aware that these vikings were
enemies of King Falfaðin and wanted to destroy his kingdom,
he rejoiced, for he hated Falfaðin and his warriors, who
often harried the Shetlands.

> Þá reið hann ofan með etki lið til fundar við víkinga.
> Then he rode down with no troops to meet the Vikings.
> Then he rode down unaccompanied to meet with the Vikings.

Then he rode down with no guard to a meeting with the
vikings.

> En es þeir fundusk, þá fóru þar allt vel rǿður með þeim.

> When they met, then (their) talk went all well with them.

> And when they met, then everything went very rosy?? with
> them.

And when they met, their talks there went very well.

Grace: It's the plural of <rœða> 'speech, talk'; you can
pretty safely assume that <ǿ> corresponds to classical ON
<œ> in Zoëga.

> Jarl bauð þeim Hólmgǫngu-Hana til veizlu með sér ok liði
> hans.

> The Earl invited them, Dueler Han (and the others), to a
> feast with himself and his troops.

> (The) earl invited them, Duel Han (etc.) to a feast with
> him and his company.

[The] jarl invited Duel-Hani and his companions to a feast
with himself and his host.

> En es þeir kvǭmu til hallar jarlsins, fagnaði hann þeim
> vel.

> When the came to the Earl's hall, he welcomed them well.

> And when they came to the earl’s hall, he welcomed them
> well.

And when they came to the jarl's hall, he greeted them well.

> Vas þeim fylgt inn í stofu.
> They were led into the sitting room.
> They were led inside into (the) room.

They were led into [the] living room.

> Vas þar þegar inni mungát ok gefit þeim at drekka.

> (There) was there at once inside ale also given them to
> drink.

> Immediately inside there was beer and (it was) given them
> to drink.

Ale was at once [brought] in and given them to drink.

> Sǭtu þeir þar til kvelds.
> They stayed there until evening.
> They visited there until evening.

They sat there until evening.

> En áðr borð skyldi upp fara, þá sagði jarl, at þar skyldi
> sæti hluta, skyldi drekka saman karlmaðr ok kona, svá sem
> til ynnisk, en þeir sér, es fleiri væri.

> And before tables should be removed, the earl told them,
> that there should bring about lots, should drink together
> a man and a woman, so as to (ynnisk?), which most would
> be. (Z, fara - borð fara upp, the tables are removed)

> But before (the) table should be taken up, then (the) earl
> said that there should cast lots, a man and a woman should
> drink together, such as pleased them, and they each other?
> who were more.

This one is a real bear; after I'd done what I could, I
looked at the translation and tried to figure out what was
going on. The end result:

But before the tables should be taken up, the jarl said
that [they] should cast lots there for seats, [who] should
drink together, a man and a woman, as [far] as [it] should
last, but they singly who were left over ['more'].

The first tricky bit is <sæti hluta>: <sæti> is the
accusative singular of <sæti> 'a seat', and <hluta> is the
verb 'to cast lots for a thing' (with the thing in the
accusative). I don't know why there's no form of <hverr>
before <drekka saman>; I shouldn't be surprised if the
literal translation is actually

... cast lots there for seats, a man and a woman should
drink together, as [far] as [it] should last, ...

<Ynnisk> is from <vinnask> 'to last, to suffice', with front
mutation in the past subjunctive. For <sér> 'singly' see
(Z1).

The idea is that they should cast lots to pair up the men
and women present insofar as this is possible, with any
excess of one sex left to drink alone. It's an exact
quotation from Ch. 48 of Egils saga. (In fact, this whole
bit is closely adapted from the beginning of that chapter.)

> Menn bǭru þá hluti sína í skaut, ok tók jarlinn upp.

> Men then bore (?) their lots in a kerchief, and the Earl
> took (it) up.

> Men took the earl up (on this?) and they cast their lots a
> small piece of cloth (Z) ???

Men then threw their lots into a cloth, and the jarl took
[it] up.

For <bera hluti í skaut> see <hlutr> (Z1).

> Jarl átti dóttur.
> The earl had a daughter.
> (The) earl had a daughter……..

[The] jarl had a daughter.

Brian