Sælir Jed ok Simon!
 
Sorry I haven´t got back to you sooner - if you could see my diary, you´d know why!!
 
Eptir þat kveldar ok drifa menn i höllina...
when I first translated this I used 'drift' too, Simon.  But apparently drifa has more of a sense of lots of people and being rather more proactive about it than the English word 'drift' does!  So flocked, thronged, came in droves - although all a bit old-fashioned, do convey the meaning more.  Byock uses 'crowded into the hall' - perhaps that's a good compromise.
 
ok sjá Hrólfs kappar at Höttr er settr á bekk upp...
thanks for your comments here, Xigung.  As you say 'settr' comes from the verb 'setja', meaning placed or put - but the English verb 'to be seated' also carries an almost identical meaning, as in "The naughty child was seated next to the teacher".
 
ok þykir þeim sá maðr hafa gört sik oerit djarfan, er þetta hefir til tekit...
we had this passage in our exam and my mind went blank at this point and I got in a complete tangle!  But according to Barnes an idiomatic translation of this would be
"it seems to them the man who has done this has shown considerable arrogance".  Word order was relatively free in ON so if you read it like this
ok þykir þeim sá maðr, er þetta hefir til tekit, hafa gört sik oerit djarfan
which becomes a little clearer to an English-speaker.
"oerit" is an adverb meaning enough, sufficiently
"djarfan" is an adjective meaning bold or arrogant.  "djarfan" is strong, masculine, accusative agreeing with "sik" also accusative.  "sik" refers back to "sá maðr", the subject of the clause.  So a literal translation á la Sarah Bowen would be...
and seems to them this man has made himself sufficiently bold who has undertaken this
... then it is only a short step to put it into colloquial English as Barnes has.  So I think both of you unravelled this really well.  (I wish I'd had you sitting next to me in the exam!)
 
Illt tillit hefir Höttr, þá er hann sér kunningja sína...
this means Höttr has a "tillit" (expression) and it is his expression which is "illt" - bad, expressing dislike, or as you say, Simon, hostile.
 
því at hann hefir illt eitt af þeim reynt...
Xigung, you mention you are not sure of the meaning of "eitt" here - well, according to my lecture notes it is a strong neuter singular adjective agreeing with "illt".  Although it is the same word as the numeral 'one' and is used adjectivally here, it corresponds most naturally to the English adverbs 'only' or 'just' - which is what you had, Simon.
 
hann vill lifa gjarnan ok fara aptr í beinahrúgu sína, en Böðvarr heldr honum, svá at hann náir ekki í brottu at fara, því at hann þóttisk ekki jafnberr fyrir höggum þeira, ef hann næði þangat at komask, sem hann er nú.
Well done, both of you!  Simon, "náir" has a bit of the sense of´ 'manages to' and Jed, "jafnberr" carries the idea of 'equally exposed' i.e. equally: sitting up on the bench as compared to down in his pile of bones.  So perhaps if you prefer, we could just say 'he would not feel as exposed to their blows if he managed to get back there, as he does now'.
 
Hirðmenn hafa nú sama vanda, ok kasta fyrst beinum smám um þvert gólfit til Bödvars og Hattar.  Böðvarr lætr sem hann sjái eigi þetta.  Höttr er svá hræddr at hann tekr eigi mat né drykk, ok þykkir honum þá ok þá sem hann muni vera lostinn.
Again, clear translations.  Xigung, you mention about "muni".  Well, it is the 3rd person singular subjunctive of munu meaning 'will' or 'must' so "would be hit" is an accurate English translation.
 
Ok nú mælti Höttr til Boðvars  "Bokki sæll, nú ferr at þér stór knúta, ok mun þetta ætlat okkr til nauða."  Böðvarr bað hann þegja.
Jed, the subject "stór knúta" is singular here (you can tell from the verb as well - ferr: 3rd p. sing of fara).  I like your translation of "coming at you"... maybe this is better than "travelling", Simon.  (Although I quite like "now a big knuckle-bone is travelling towards you..."  - it conjures up images in my mind from spoof films like "Naked Gun 2 and a half" or "Robin Hood - Men in Tights"!!!!!)
 
Right, well I'm all in now so I'm off to bed and I'll come back to you on the last few lines when I get home from work tomorrow.  (And next time I have an ON exam, can I sneak you in in my pockets, please?)
 
Kveðja,
Sarah.