> Vildi hann þá og halda til gleði sakir stýrimanns.

> He wanted then also to be the cause of happiness for the
> sake of the captain.

> He wanted then also to promote merriment for the sake of
> the captain.

> He wanted then (at that time, or is þá a pronoun here(?))
> also to be-conducive to (halda til e-s, Z.iii) merriment
> (for) the sake of (sakir e-s = fyrir sakir e-s) (the)
> captain. (ie he wanted to keep the captain entertained)

'Then', I think.

> Hún kvað leika lagða í Kollafirði "en hitt er meira,"
> sagði hún, "að Örn stýrimaður situr á tali við Ólöfu hina
> vænu hvern dag og ætla menn að hann muni glepja hana."

> She said (she) appointed a plaything in Kollafirth "and is
> found more," she said, "that Captain Orn sits speaking
> with Olaf the Good each day and men think that he would
> beguile her."

> She said games were taking place at Kolli’s Fjord, “but it
> is more” said she, “that Captain Orn sits in discussion
> with Olof, the fair, every day and people expect that he
> will beguile her.”

> She declared (they) discharged (prosecuted) (leggja) games
> in Kollafjörðr “but that (neut nom sg of pronoun hinn) is
> more (pertinent) ,” said she, “that Captain Örn sits in
> conversation with Ólöf the beautiful every day and people
> (men) expect he will beguile her.”

It's <leggja> (Z5) 'to appoint, fix', here as the past
participle (masc. accus. plur.): 'She declared games
appointed in Kollafjörð'.

> Nú vil eg að þú gangir til leika ...
> I want that you go to play ...
> Now I want that you go ... to play ...
> Now I want that you should-go to (the) games ...

Just to emphasize the point: <leika> here is not the verb,
but rather the genitive (required after <til>) plural of
<leikr>, hence 'games'.

> Ekki má varðveita þig þannig ef þér er dauði ætlaður."

> It is not permitted to keep you thus if you are meant for
> death."

> (I?) am not able to protect you thither if you anticipate
> death.”

> (One) may not preserve you thus if death is planned
> (intended) for you.”

I'd say 'It's not possible to protect you'.

Brian