> ok spyrr hverr annan
> and inquired of each other

That's right, literally "and each asked the other".

> Þá var Loki tekinn ok færðr á þingit, ok var honum heitit bana eða

píslum.

> Then was Loki taken from the þing and threatened with (?heita) death

or torture.

"Then Loki was caught and brough to the thing (assembly, council [of
the Gods]) and threatened with death or tortures."

> ok kemr einn dag til Þjaza jötuns
> and arrives in a single day to Thjazi the Giant

"and comes one day to the home of the giant Thjazi"

> Var hann róinn á sæ
> He was rowing on the sea

"He had rowed to sea"

> arnarharminn

A typo for 'arnarhaminn' (accusative) "the form of an eagle".

> ok dró arnsúg í flugnum

Lit. "and there was made an eagle-sucking (roaring of wind from
eagle's wings) in the [i.e. his] flight"

> út undir Ásgarð

I.e. "out under the walls of Asgard"

> fyrir innan ásgrindr

"inside the gates of Asgard"

> öll hervápn
> all her weapons

"all weapons of war" (rather than 'vápn sín' "her weapons").

> Fátt mun ljótt á Baldri.

"Not much will be ugly on Baldr." (Which is who she hopes it is,
thinking: anyone with feet this fine must be Baldr, the most beautiful
of the gods.)