You sorted out the problems I had with this section.

Hann sat yfir virðingu allra höfðingja fyrir norðan
a hundred servants. He sat over ('out-ranked') the honour of all the
chieftains north-of

Öxnadalsheiði svo að sumir létu bústaði sína en suma tók hann af lífi en

Öxnadalsheið so that some (folk) lost their dwelling-place, but (and)
some he took from life (ie had killed) but (and)

sumir létu goðorð sín fyrir honum. Og er frá honum komið allt hið mesta
some lost their authority-of-goði to him.

Grace
Fred and Grace Hatton
Hawley Pa