Here’s my translation

Alan

 

Hrafn spurði, hverr fyrir eldinum réði. 
Hrafn asked, who had-authority-for (ie was responsible for, commanded, ordered, <ráða fyrir e-u>, Z16) the-fire.

Þorvaldr svarar ok segir, at hann réð fyrir. 
Þorvaldr answers and says, that he had-authority-for (ie was responsible for, commanded, ordered, <ráða fyrir e-u>, Z16) [it].

Hrafn spyrr, hvat hann gæfi honum at sök, er hann bar eld at húsum hans. 
Hrafn asks, what charge he (Þorvaldr) would make against him (Hrafn) ( ‘what´s your grudge?’,lit: what he would give to him as a charge, <gefa e-t e-m at sök>, <sök>, Z1), that he bore (ie set) fire to his farm-buildings.

Þorvaldr kvað margt til saka. 
Þorvaldr declared many (things, gramm sg.) as-[the] reasons (gen. pl. <sök>).

Hrafn spurði, hvat þat væri. 
Hrafn asked, what they (gramm sg. agreeing with <margt>) would-be.

Þorvaldr svarar, kvað Hrafn hafa verit í fjörráðum við sik, þá er hann færði ómagann í Súðavík. 
Þorvaldr answer, declared Hrafn to have been in a plotting against his (Þorvaldr’s) life, when he conveyed the-helpless-one to Súðavík.

Hrafn kvað eigi þat satt vera, "því at ek vissa, hvar skip þitt var eða þú, þá er ek var í Súðavík, ok hafða ek svá mikit fjölmenni, at ek átta alls kost við þik, þess er ek vilda. 
Hrafn declared that not to be true, “because I knew, where your ship was, or you, when I was in Súðavík, and I had such a great many-persons (men), that I had you altogether in my power (lit: a choice of all with you, <kostr>, Z3), of those [choices] which I wanted.

Svá vissa ek, er þú vart í Holti í Önundarfirði, ok hafða ek þá enn ærit fjölmenni at gera slíkan þinn hlut sem at ek vilda. 
So I knew, when you were in Holt in Önundarfjörðr, and I had then still many-persons (men) sufficient to make your position (your lot, <hlutr>, Z6), such as I wanted.

Nú er á hitt at líta, hvat vér skulum til þess vinna, at þú brennir eigi bæinn." 
Now [one] is to consider (lit: to look on, <líta á e-t>, Z3) that, what we shall do in-order to bring-about that (<vinna e-t til e-s>, Z12), that you burn not the farmstead.”

Þorvaldr svarar: "Þú skalt handsala mér sjálfdæmi fyrir þá hluti alla, er ek vil gera á hendr þér. 
Þorvaldr answers: “You shall make-over-by-handshake self-judgment (ie the right to judge one’s own case) to me for (in respect of) all those things, which I want to arbitrate against (<á hendr, Z1>) you.

Skaltu járn bera fyrir þat, at þú vildir eigi bana minn í Súðavíkrför." 
You-shall carry [hot] iron [as an ordeal,] (<járn, Z1>) for that, that you wanted not (past tense) my death in [the] Súðavík-journey.

Hrafn sagðist eigi mundu selja honum sjálfdæmi, — "fyrir því at mér mun eigi skortr liðveizlu af bragði." 
Hrafn said-of-himself [that he] would not make-over self-judgment to him – “for that [reason] that (ie because) [there] will not [be] a lack of support for me, at once.

Þeir háðust þar við um stund, ok gátu þeir Þorvaldr eigi brenndan bæinn fyrir varnar sakir þeira manna, er fyrir váru. 
They bandied-words (<heyja, Z2>) there-with for a while, and they, Þorvaldr [and his men] did not get the-farmstead burnt (pp. masc acc sg.) for reasons of (ie because) [the] defence of those persons [men), who were present (at hand, to the fore).

Þá sá þeir Þorvaldr, hvar skip fóru utan eftir firðinum, skipuð mönnum ok vápnum. 
Then Þorvaldr [and co] saw, where ships journeyed from-outside (ie from afar) along the-fjord, arranged with persons (men) and weapons (ie manned and armed).

Þorvaldr spurði þá Hrafn, ef hann vildi þeira mál í nökkurs manns gerð leggja, en Hrafn gerðist til þess tregr, því at hann vissi sér þá liðs ván. 
Þorvaldr then asked Hrafn, if he wanted to submit (<leggja>, inf) their case to [the] arbitration of some person (man), but (and) Hrafn, became unwilling of that, because he then (at that time) knew [the] expectation of (ie he expected) assistance for himself. (ie in the shape of the ships coming up the fjord)

Þá áttu margir menn hlut í, at þeir skyldi sættast, ok skyldi Hrafn hafa þá nefnu um þetta mál, er honum þætti góð. 
Then many persons (men) were concerned (lit: had participation in [it], <hlutr>, Z5)), that they should come-to-terms, and Hrafn should have that nomination which seemed to him good concerning this case.

Þorvaldr var þá fúss til sætta, er hann sá lið vápnað fara til fulltings við Hrafn. 
Þorvaldr was then eager for agreements, when he saw armed (‘weaponed’) troops journey for-the-purpose of assistance to Hrafn.

Þat urðu málalok þessa fundar, at Þórðr Sturluson skyldi gera milli þeira Hrafns ok Þorvalds bæði um heimsókn ok allt þat, er honum þætti gerðar þurfa í milli þeira. 
That became [the] end-of-the-matter of that confrontation, that Þórðr Sturla’s-son should arbitrate between them, Hrafn and Þorvaldr, both concerning [the] (arson) attack-on-the-home and all that, which seemed to him (Þórðr) to be-in-need of arbitration (görð, Z3) between them (Hrafn and Þorvaldr).