Here´s my translation and a few comments. I encountered much the same problems as you, Grace, so I´m afraidmy translation will not help you much

Þeir kváðu hann með nokkuru góðu fara mundu. Dvaldist (dveljast) Hallur þar nokkura
They declared (they) would go him with some good (?). Hall stayed there for some

stund, og áðu (æja). Eftir það tóku þeir hesta sína og riðu á Sólheima um kveldið
time and rested-and-baited-his-horses. After that they took their horses and rode to Sólheim during the evening

og voru þar um nóttina.
and were (stayed) there during the night.


En um daginn eftir riðu þeir í Holt. Þorgeir var úti og svo Kári og menn þeirra
But during the day after they rode into Holt. Þorgeir was outside and also Kári and their men

því að þeir kenndu ferð Halls. Hann reið í blárri kápu og hafði litla
because they recognised Hall’s behavior (manner, Z2 possibly seems to fit better here?). He rode in a blue-black hooded-cloak and had a little

öxi silfurrekna (silfrrekinn) í hendi. En er þeir komu í túnið þá gekk Þorgeir í móti þeim
axe silver-mounted in (his) hand. But when they came into the home-meadow, then Þorgeir walked towards them

og tók Hall af baki og minntust (minnast) þeir Kári báðir við hann og leiddu hann í
and took Hall from (his horse´s) back (ie helped him dismount) and they, Kári (and he) both kissed with him and lead him in

milli sín í stofu og settu hann á pall í hásæti og spurðu hann margra
between them into (the) sitting-room and set him on (the) dais in (the) high-seat and asked him for many

tíðinda. Var hann þar um nóttina.
tidings. He was (stayed) there during the night.


Um morguninn eftir vakti (vekja, not vaka) Hallur til máls við Þorgeir ef hann vildi sættast
During the morning after Hall raised the question (see vekja til máls, Z5) with Þorgeir if he wanted to-come-to-terms

og sagði hverjar sættir þeir buðu honum og talaði þar um mörgum orðum fögrum og góðgjarnlegum.
and stated all (the) agreements they offered him and talked there with many fair words and kindly.


Þorgeir svarar: "Kunnigt má þér það vera að eg vildi engum sættum taka við brennumenn."
Þorgeir answers: ‘That may be known to you that I wanted to take (accept) no agreements with the incendiarists (burning-men).’


"Allt var það annað mál," segir Hallur. "Þér voruð þá vígreiðir. Hafið þér
’That was a completely different time,’ says Hall. ‘You (plural) were then in-warlike-mood. You have

nú og mikið að gert (göra) um mannadráp síðan."
now also accomplished much by-way-of manslaughter since.’


"Svo mun yður þykja," segir Þorgeir, "en hverja sætt bjóðið þér Kára?"
’So (it) will seem to you,’ says Þorgeir,’ but what agreements do you offer to Kári?’


"Boðin (bjóða) mun honum sættin sú er sæmileg (soemiligr) er," segir Hallur, "ef hann vill sættast."
’The agreement will (be) offered to him, that which is honourable,’ says Hall, ‘if he wants to-come-to-terms.’


Kári mælti: "Þess vil eg biðja þig, Þorgeir vinur, að þú sættist því að þinn
Kári spoke: ‘I want to offer you that, friend Þorgeir, that you come-to-terms because your

hlutur má ekki verða betri en góður."
(bargaining) position may not become better than good (the good one you now enjoy?).’


"Illt þykir mér að sættast og skiljast við þig nema þú takir slíka sætt sem
’Ill it seems to me to-come-to-terms and to forsake you, unless you take (accept) such an agreement as

eg tek," segir Þorgeir.
I take (accept),’ says Þorgeir.


"Eigi vil eg það," segir Kári, "að sættast. En þó kalla eg nú að við höfum
’I want not that,’ says Kári, ‘to come-to-terms. But nevertheless I claim now that we have

hefnt brennunnar. En sonar míns kalla eg vera óhefnt og ætla eg mér einum
avenged the burnings. But I claim my sons to be unavenged and I intend for myself alone

það að hefna hans slíkt sem eg fæ að gert."
that, to avenge him such as I am able to accomplish (it).’


En Þorgeir vildi eigi fyrr sættast en Kári sagði á ósátt sína ef hann
But Þorgeir wanted not to come-to-terms before Kári expressed his disagreement to (it)(?) if he

sættist eigi. Handsalaði Þorgeir þá grið Flosa og hans mönnum til
did not come-to-terms. Þorgeir then confirmed (by hand-shake) a truce with Flosi and his men until

sáttarfundarins en Hallur seldi (selja) önnur í móti er hann hafði tekið af Flosa og
the peace-meeting but (and) Hall made-over another (truce) in return which he had taken from (on behalf of) Flosi and

Sigfússonum. En áður þeir skildust gaf Þorgeir Halli gullhring og
(the) Sigfús´s-sons. But before they parted Þorgeir gave Hall a gold-ring and

skarlatsskikkju en Kári silfurmen og voru á gullkrossar þrír. Hallur þakkaði
scarlet-cloak but (and) Kári (gave him) a silver-necklace and three gold-crosses were on (it). Hall thanked

þeim vel gjafarnar og reið í braut með hinni mestu sæmd og létti eigi fyrr
them well for the gifts and rode away with the greatest honour and stopped not before

en hann kom til Svínafells. Tók Flosi vel við honum.
he came to Svínafell. Flosi took to (received) him well.