Hi Dirk,
 
You've made a good shot at this, only a few places where the translation really came unstuck.  Let's hope the following helps...
 
Ok nú fara þeir útan heðan, ok fersk þeim vel,
And now they went out hence and  ____    them well

fersk stems from fara-sk.  This -sk form can convey a reflexive meaning, or a passive one, or a meaning mid-way between the active voice and the passive.  So very literally we get : "and it goes to them well".  Or more like, "they fared well".
 
ok var Auðun of vetrinn eptir með Þóri stýrimanni;
and Audin went out of the way together with Thori ______man

of vetrinn means over the winter.  "of" is a prepostion which in this time construction takes the accusative, but you can't actually see that from the form of the noun "vetr". 
 
The adverb "eptir" refers back to the verb "var", vera eptir conveys the meaning to remain or be left behind. 
 
"Stýrimaður" is the man to steers the boat, the helmsman.  So this gives us
    and Audun remained behind with Thor the helmsman for
    the winter.
 
hann átti bú á Moeri. 
his father Mori dwelt with him.

átti is a form of the past tense of "eiga".  Eiga bú literally means to own a property or farm, so this gives us
    he lived at Moeri.
 
Ok um sumarit eptir fara þeir út til Groenlands,
And went about after about them out to Greenland,

"um sumarit" is another expression of time, in the summer.  But in this case it is "sumarit eptir" - the summer after, or the following summer.
"fara þeir út til" is literally they travel out to.
 
ok eru þar of vetrinn.
and _______ there on the way.
 
Again, this is an expression of time.  And (they) are there for the winter.
 
Þess er við getit,
There he went with

at Auðun kaupir þar bjarndýri eitt,
to Audin to buy one beedrink, or to buy Audin some mead.
This is tricky!  Þess is the genitive singular of þat meaning "of that"
er means is
við is a preposition which can have many meanings according to the context.  Here it is "about" or "concerning"
getit is the past participle from geta which can also have a number of meanings, one of which is "to relate" or "tell of". 
So, put altogether, this gives us
  "It is said of this..." or "About this it is related..."
 
at Auðun kaupir þar bjarndýri eitt
that Audun buys a bear
 
kaupir is the present subjunctive of kaupa to buy, because this piece of information is related.
eitt is a numeral "one" - here in the neuter to agree with bjarndýri.
 
gørsimi mikla,
______  much (or greater)
gørsimi is a feminine noun meaning "a treasure".  You are right that "mikla" means great and it takes that form to agree with the feminine noun.
 
ok gaf fyrir alla eigu sína. 
and gave for him one
Here we have that word "eiga" again, but here it isn´t a verb, it is inflected "eigu" in the accusative form and as a noun it meaning possessions.
sína is a reflexive pronouns agreeing with eigu and refers back to the subject of the sentence, i.e. Audun. 
So put that together and we get
  and (he) gave all his possessions for (it).
 
Ok nú of sumarit eptir fara þeir aptr til Nóregs, ok verða vel
reiðfara.
and now they traveled after them to Norway, and were well traveled.
And now, the following summer, they travel back to Norway and have a good journey.
"verða vel reiðfara" is a set phrase according to E V Gordon.
----- Original Message -----
From: Dirk Howat
To: norse_course@yahoogroups.com
Sent: Friday, October 29, 2004 3:40 PM
Subject: [norse_course] Re: Þáttr Auðunar continued!


Sarah,

I am going to give it a try. Don't laugh because I am doing this off
the top of my head without a dictionary.



_______________________
Ok nú fara þeir útan heðan, ok fersk þeim vel,
And now they went out hence and  ____    them well

ok var Auðun of vetrinn eptir með Þóri stýrimanni;
and Audin went out of the way together with Thori ______man

hann átti bú á Moeri. 
his father Mori dwelt with him.

Ok um sumarit eptir fara þeir út til Groenlands,
And went about after about them out to Greenland,

ok eru þar of vetrinn.
and _______ there on the way.

Þess er við getit,
There he went with

at Auðun kaupir þar bjarndýri eitt,
to Audin to buy one beedrink, or to buy Audin some mead.

gørsimi mikla,
______  much (or greater)

ok gaf fyrir alla eigu sína. 
and gave for him one


Ok nú of sumarit eptir fara þeir aptr til Nóregs, ok verða vel
reiðfara.
and now they traveled after them to Norway, and were well traveled.






__________________
I guess this would be phase one which took 3 minutes. I would then
have to get a dictionary to look up the other words and then make a
more fluid translation while trying to be as true or literal as I
could to the original text.











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