> fyrir vestan haf
> in the West (CSOI - Britain)

Literally "west of the sea", i.e. Britain. As with a lot of direction
terminology, a Norwegian point of view is implied (cf. 'út' "in
Iceland", 'útan' "abroad"; and the eighth points of the compass:
"landnorðr' "northeast", etc.).

> kvað hann þar göfgan mundu þykja sem hann væri
> declared that he would be thought [of] as noble as he was (with or
without land)

Yes. 'þar...sem' literally "where" he was, but here more abstract.
Gwyn Jones: "as he was".

> efnilegir
> worthy

"promising"

> Hornströndum

Nominative 'Hornstrandir' (plural).

> setstokka
> Bedboards (CSOI -I can find no really satisfactory word for these)

That must be because we don't live in 10th century Norse halls... If
I've got this right, the 'set' was the raised platform or dais that
runs along the sides of the hall. The '(set)stokkar' were beams that
ran along the edge of the 'set' separating it from the unfloored
central aisle where the hearth was. Some sources describe a ritual in
which someone would place their foot on this beam to swear a solemn oath.

http://lexicon.ff.cuni.cz/png/oi_cleasbyvigfusson/b0524.png

http://www.viking.ucla.edu/hrolf/media/Hallins.gif
http://www.viking.ucla.edu/hrolf/media/Hallsect.gif

> skammt frá garði
> before the Courtyard(Z3)

I would have thought Zoega 4 "house, dwelling". GJ has "a short way
from the house".

LN