Here´s my translation. Grace, Rob, I have highlighted words and phrases where I have a different interpretation to either one or both of you.

Kveðja

Alan

Höskuldur gerist (görast) nú höfðingi mikill. Hann var ríkur og kappsamur og skortir
Höskuldr became now a great chieftain. He was powerful and impetuous and lacking

eigi fé. Þótti (þykkja) hann í engan stað minni fyrir sér en Kollur faðir hans.
not wealth (not short of a penny). He seemed in no respect (noways, see í engan stað under staðr, Z2) less powerful (cf mikill fyrir sér, under fyrir, Z13) than Kollr his father.

Höskuldur og Jórunn höfðu (hafa) eigi lengi ásamt verið áður þeim varð barna (gen pl) auðið.
Höskuldr and Jórunn had not been long together before they were blessed with children (lit.(there) was fated to them children, see e-m verðr e-s auðit, under auðit, Z1)

Son þeirra var nefndur Þorleikur. Hann var elstur barna þeirra. Annar hét (heita)
Their son was named Þorleikr. He was (the) eldest of their children. A second (son) was-called

Bárður. Dóttir þeirra hét (heita) Hallgerður er síðan var kölluð langbrók. Önnur
Bárðr. Their daughter was-called Hallgerðr who later was called ‘lanky’‘long-trouser-leg’ J Their second

dóttir þeirra hét (heita) Þuríður. Öll voru börn þeirra efnileg. Þorleikur var
daughter was-called Þuríðr. All their children were promising. Þorleikr was

mikill maður og sterkur og hinn sýnilegsti, fálátur og óþýður (úþýðr). Þótti mönnum sá svipur
a tall man and strong and the most-comely (sightly, sýniligr, Z2 = handsome) , reserved, and unfriendly. That look (countenance, svipur, Z4) seemed to men

á um hans skaplyndi sem hann mundi verða engi jafnaðarmaður.
on (display) concerning his disposition (ie he exhibited a disposition) like he would become no equitable-man.

Höskuldur sagði það jafnan að hann mundi mjög líkjast í ætt þeirra Strandamanna.
Höskuldr said that always, that he would most show-likeness to the family of (the) folk-from-Strandir (see líkjast í ætt e-s, under líkja).

Bárður var skörulegur maður sýnum og vel sterkur. Það bragð hafði hann
Bárðr was an imposing man in appearance and really strong. He had that look (bragð, Z4)

á sér sem hann mundi líkari verða föðurfrændum sínum. Bárður var
about him like he would be more-like his father’s-kinsman. Bárðr was

hægur (hoegr) maður í uppvexti (uppvöxtr) sínum og vinsæll maður. Höskuldur unni honum mest
gentle (even-tempered) in his growing-up and a popular person. Höskuldr loved him most

allra barna sinna.
of all his children.


Stóð (standa) nú ráðahagur (state of life, condition, I think, suits the sense better here) Höskulds með miklum blóma (blómi) og virðingu.
Höskuld’s state-of-affairs now flourished (blossomed) and prospered greatly (lit: stood with many blooms and honour).


Þenna tíma gifti Höskuldur Gró systur sína Véleifi gamla. Þeirra son var
At this time Höskuldr gifted (ie gave in marriage) his sister Gróa to Véleifr (the) old. Their son was

Hólmgöngu-Bersi.
Hólmgöngu-Bersi (holm-going, duelling Bersi).


10. kafli - Af Hrappi óþokka (úþokki)
Chapter 10. About Hrappr (the) Repulsive (Nasty).


Hrappur hét (heita) maður er bjó (búa) í Laxárdal fyrir norðan ána, (á, river, with def. art suffixed) gegnt Höskuldsstöðum.
(There) was a person (man) called Hrappr who lived in Laxárdal (Salmon-River-Dale) north of the river, opposite Höskuldsstaðir (Höskuldr’s-steads).

Sá bær hét (heita) síðan á Hrappsstöðum. Þar er nú auðn. Hrappur var Sumarliðason og
That farm was-called later (at) Hrappsstaðir (Hrappr’s-steads). A deserted farm is now there (ie the farm is now deserted). Hrappr was son of Sumarliði and

kallaður Víga-Hrappur. Hann var skoskur að föðurætt en móðurkyn hans var
was called Víga-Hrappr (Killer-Hrappr). He was Scottish by (his) father’s-pedigree (on his father’s side) but all his mother’s-kin was

allt í Suðureyjum og þar var hann fæðingi. Mikill maður var hann og sterkur.
in (the) Hebrides (lit: South Islands) and he was a native there. A tall man was he and strong (like most Icelanders, it seems J)..

Ekki vildi hann láta sinn hlut þó að manna munur væri nokkur. Og fyrir það er
He wanted not to be worsted (see láta hlut sinn, under hlútr, Z6) even though (there) was some difference of men (?). (ie whatever the ability of his opponent?). And for that (reason) that (ie because)

 hann var ódæll (údæll) sem ritað var en vildi ekki bæta (boeta) það er hann misgerði (misgöra) þá
 he was difficult, as was written, but (and) wanted not to pay-compensation for that which he transgressed, then

flýði (flýja) hann vestan um haf og keypti (kaupa) sér þá (pronoun, fem acc of sá) jörð er hann bjó (búa) á. Kona hans hét (heita)
he fled from (the) west (ie east) across (the) sea and bought himself that land which he lived on. His wife was-called

Vigdís og var Hallsteinsdóttir. Son þeirra hét (heita) Sumarliði. Bróðir hennar hét (heita)
Vigdís and was Hallsteinn’s daughter. Their son was-called Sumarliði. Her brother was-called

Þorsteinn surtur er þá bjó (búa) í Þórsnesi, sem fyrr var ritað. Var þar Sumarliði
Þorsteinn (the) Black who then lived in Þórsnes, as earlier was written. There, Sumarliði was

að ( prep see at, Z.II.2) fóstri (dative)og var hinn efnilegsti maður
under foster-care (maintenance, see fóstr, Z2) and he was the most-promising man.