> "Illa er það," segir Höskuldur,

MM & HP: "That is a pity."

> "því að heldur vildi eg vera ógildur en margir hlytu (hljóta?) illt

af mér."

> 'That is badly (done),' says Höskuld, `because I would rather be

unpaid (not recompensed) than (that) many got ill from me (suffered as
a result of me).'

I.e. "I'd rather no compensation be paid for me (if I'm killed) [...]"
'hlytu' is the modern form of the past third person subjunctive of
'hljóta'. In the early medieval period (and in normalised Old Norse),
the plural was 'hlyti', just like the singular.

> og var hlaðbúin í skaut niður.

MM & HP: "bordered with lacework down the front"

> En hin sama er óþykkt (úþykt) með þeim allan veturinn.
> Höskuld was a man so popular that few were his enemies. But the same

(ie unchanged) is the discord between them all the winter.

Or you could maybe translate it: "There is the same discord [...]"

> Nú vorar (vára) snemma um vorið
> Now (it) becomes spring early during the spring (well strike me lucky)

Talk about uncanny coincidences!