Hi Simon !
I still cannot read your ON text. (you send your
message coded in Base64???)
Any way, I went to the "Midnite Sun" site, and relocated
what I think is your source, and reinserted it underneath
your message:

Simon Fittonbrown wrote:

> Þá mælti Vöggr: "Gef þú allra konunga heilastr,
> ok þess strengi ek heit, at verða þess manns bani,
> er þinn banamaðr verðr." Þá mælti konungr, ok
> hló við: "Litlu verðr Vöggr feginn."
> 1. Gef þú - an imperative?
> 2. ok hló við: "Litlu verðr Vöggr feginn."
> - what does that mean?

The restituted text:

« Þá mælti Vöggr: "Gef þú allra konunga heilastr,
ok þess strengi ek heit, at verða þess manns bani,
er þinn banamaðr verðr." Þá mælti konungr, ok
hló við: "Litlu verðr Vöggr feginn."
»
1. Gef þú - an imperative?
2. ok hló við: "Litlu verðr Vöggr feginn." - what it means.
-------------
I agree that gef can be imperative singularis 2nd person
of GEFA - to give. But I do not understand all the details
of the sentence, but the point is that he (Vögg) in
gratitude promises to revenge the king if someone should
kill him. Then the king laughs. But right now I do not
understand why it says LITLU. As far as I can see it is
a dative form of "lítill" (small/little). But I do not
understand how the dative applies here. (Vöggr will not
be very happy?)

I will take a look at Paul Hermann's translation again.
From what I have seen, his translations are fairly accurate.
Please also take a look at Guðni Jónsson's edition which
is on the net. It differs from the pages you are using.
(are they from Gordon?)

Best,
Xigung