Here’s my translation

Alan

Þá svarar Helgi: "Vendilega hefir þú að þessum manni hugað.
Then Helgi answers: „You have attended carefully to this person (man).

Mun og mikils um þenna mann vert vera. En ekki mun eg þenna mann séð hafa.
(It) also will be worthy of much concerning this person (man) (He must be some special guy). But I will not have seen this person (man).

En þó mun eg geta til hver hann er. Það hygg eg að þar hafi verið Bolli Bollason því að það er
But nevertheless I will guess at who he is. I think that, that there has been Bolli Bolli’s-son because that is

mér sagt að hann sé efnilegur maður."
said to me that he is a promising person (man).”

Þá mælti sveinninn: "Þá sat maður í smeltum söðli. Sá var í gulgrænum kyrtli.
Then the-lad spoke: “Then sat a person (man) in an enamelled saddle. That-one (ie he) was in a yellow-green kirtle.

Hann hafði mikið fingurgull á hendi. Sá maður var hinn fríðasti sýnum
He had great gold-finger-rings on (his) hand. That person (man) was the most-handsome in appearance

og mun enn vera á ungum aldri, jarpur á hárslit og fer allvel hárið og
and will still be at a young age (ie in his youth), reddish-brown in hair-colour and the-hair goes (grows?, behaves, fara, Z10, or suits, fara, Z9, either way he had no shortage of hair) very-well and

að öllu var hann hinn kurteisasti maður."
in every-respect was he the most-well-bred person (man).”

Helgi svarar: "Vita þykist eg hver þessi maður mun vera er þú hefir nú frá sagt.
Helgi answers: “I bethink-myself to know who this person (man) will be whom you now have described (lit: said about).

Þar mun vera Þorleikur Bollason og ertu skýr maður og glöggþekkinn."
There will be Þorleikr Bolli’s-son and you-are an intelligent person and clear-sighted (discerning).”

Sveinninn segir: "Þar næst sat ungur maður. Hann var í blám kyrtli og í
The lad says: “There next sat a young person (man). He was in a blue-black kirtle and in

svörtum brókum og gyrður í brækur. Sá maður var réttleitur og hvítur á
black breaches and with breeches girt over his underclothing (see brók, Z2). That person was regular-featured and white in

hárlit og vel farinn í andliti, grannlegur og kurteislegur."
hair-colour and well favoured (farinn, Z2) in countenance, slim and well-bred.”

Helgi svarar: "Þenna mann kenni eg og hann mun eg séð hafa og mundi þá vera maðurinn allungur.
Helgi answers: “I know this person (man) and I will have seen him and the-person (man) would then (ie when I saw him) be very-young (no comparative).

Þar mun vera Þórður Þórðarson fóstri Snorra goða og
There will be Þórðr Þórðr’s-son, foster-son of Snorri goði (priest-chieftain) and

hafa þeir kurteist lið mjög Vestfirðingarnir. Hvað er enn þá?"
they have a very well-bred band, the West-fjorders. What is still (to come) then?”

Þá mælti sveinninn: "Þá sat maður í skoskum söðli, hár í skeggi og skolbrúnn mjög,
Then the-lad spoke: “Then sat a person (man) in a Scotch saddle, hair in a beard and very swarthy,

svartur á hár og skrúfhár og heldur ósýnilegur og þó garplegur.
black in hair and stiff-haired and rather unsightly (if not downright ugly) and (but) nevertheless warrior-like.

Hann hafði yfir sér fellikápu grá."
He had (wore) over himself grey plaid.”

Helgi segir: "Glöggt sé eg hver þessi maður er. Þar er Lambi Þorbjarnarson
Helgi says: “I should-be clear who this person (man) is. There is Lambi Þorbjörn’s-son

úr Laxárdal og veit eg eigi hví hann er í för þeirra bræðra."
out of Laxárdalr (Salmon-River-Dale) and (but) I know not why he is in the company (while travelling), of those brothers.”

Sveinninn mælti: "Þá sat maður í standsöðli og hafði ysta heklu blá og
The lad spoke: “Then sat a person (man) in a high-saddle and had (wore) an outer (see ytri) blue-black hooded-frock and

silfurhring á hendi. Sá var búandlegur og heldur af æsku aldri, dökkjarpur á
silver-ring on (his) arm. That-one (ie he) was peasant-like (or merely stout?) and rather beyond (af, Z.ii) a youthful (oeskr) age (ie definitely no spring chicken), dark-auburn in

hár og hrökk mjög. Hann hafði ör í andliti."
hair and (it) curled (hrökkva, Z2) greatly. He had a scar (örr) on his face.”

"Nú versnar mjög frásögnin," sagði Helgi. "Þar muntu séð hafa Þorstein
“Now the description greatly deteriorates,” said Helgi. “There you will have seen Þorsteinn

svarta mág minn og víst þykir mér undarlegt er hann er í þessi ferð
(the) Black my brother-in-law and certainly (it) seems strange to me that he is in this expedition

og eigi mundi eg veita honum slíka heimsókn. Eða hvað er enn þá?"
and I would not grant (pay) him such a visit. So what else is (there) then?”