Here’s my translation, with various suggestions.

Thanks, Brian, for help on last section

Kveðja

Alan

Þórólfur unir illa við sinn hlut. Þykist hann mjög svívirður vera í þeirra
Þórólfr is ill-content with his lot. He thinks-himself to be much put-to-shame  (disgraced) in those

skiptum. Er hann þar þó í eyjunum og hefir það að vísu í hug sér að rétta
dealings. He is (stays) there nevertheless in the-islands and has that certainly in his mind to straighten-out

þenna krók er honum var svo nauðulega beygður (beygja) . Hallur uggir ekki að sér og
this crook which was so awkwardly crooked for him (metaphor, for an awkward situation, see beygja e-m krók, under beygja). Hallr apprehends no danger (see ugga ekki at sér, Z1) and

hugsar það að engir menn muni þora að halda til jafns við hann þar í átthaga hans.
thinks that, that no men will dare to be a match for him (see halda til jafns við e-n, under halda, Z.III) there in his native place.


Það var einn góðan veðurdag að Hallur reri (róa) og voru þeir þrír á skipi.
That was one good weather day (one fine day) that Hallr went-rowing and they were three on (the) ship (Three Men in a Boat).

Bítur vel á um daginn. Róa þeir heim að kveldi og eru mjög kátir. Þórólfur hefir
(It) bites well on them (ie the fish were biting) during the-day. They row home in the evening and are very cheerful. Þórólf has

njósn af athöfn Halls um daginn og er staddur í vörum (vör) um kveldið þá er þeir
news of Hallr’s doings during the-day and is positioned in the fenced in landing place, during the-evening when they

Hallur koma að landi. Hallur reri (róa) í hálsi fram. Hann hleypur fyrir borð og
Hallr (and the other two) come ashore (to land). Hallr rowed up in the foremast-part-of-the-boat. He leaps over-board and

ætlar að taka við skipinu. Og er hann hleypur á land þá er (vera, here I think) Þórólfur þar nær
intends to receive the-ship (ie guide it in to its mooring). And when he leaps onto land, then is Þórólf near there

staddur og höggur (höggva) til hans þegar. Kom höggið á hálsinn við herðarnar og
positioned and hews towards him at-once. The-blow came onto the neck close to the-shoulders and

fýkur (fjúka) af höfuðið. Þórólfur snýr (snúa) á brott eftir það en þeir félagar Halls styrma yfir honum.
the-head flies off. Þórólfr turns away after that but they, Hallr’s companions, crowd around him (Hallr).


Spyrjast nú þessi tíðindi um eyjarnar, víg Halls, og þykja það mikil tíðindi
These events (tidings) are-reported around the-islands, Hallr’s slaying, and that seem great (important, profound) tidings

því að maður var kynstór þótt hann hefði engi auðnumaður verið. Þórólfur
because (the) person (man, ie Hallr) was of noble-extraction even though he had been no lucky-person (favourite-of-fortune). Þórólfr

leitar nú á brott úr eyjunum því að hann veit (vita) þar engra þeirra manna von (ván = hope, expectation) er
tries-to-get away out-of the-islands because ## he expected (knew expectation, see vita ván under vita, Z2) there from none of those persons (men) who

skjóli muni skjóta yfir hann eftir þetta stórvirki. Hann átti (eiga) þar og enga
will (would) give shelter to him (see skjóta skjóli yfir e-n, under skjól) after this great-deed ##. He had there also no
##paraphrasing: “he had no expectation that there would-be any man there who would give him shelter after this great-deed”

frændur þá er hann mætti (mega) sér trausts af vænta en (but) þeir menn sátu (sitja) nær er vís
kinsmen, those whom he might expect (see vænta, impers, Z3) for protection for himself, but (ie on the other hand) those men sat near for-which (there) was certain

von (ván) var að um líf hans mundu sitja og höfðu mikið vald
expectation that (they) would seek his life (see sitja um lif e-s) and (who) had great power,

svo sem var Ingjaldur Sauðeyjargoði bróðir Halls.
such as Ingjaldr Sauðeyjargoði (Priest-Chieftain of Sheep Island) was, Hallr’s brother.


Þórólfur fékk (fá) sér flutning inn til meginlands. Hann fer (fara) mjög huldu höfði.
Þórólf obtained for himself transport in to (the) mainland. He travels with much concealed head.

Er ekki af sagt (segja) hans ferð áður hann kemur (koma) einn dag að kveldi á Goddastaði.
Nothing is said of his journey before he comes one day at evening to Goddastaðir (Goddi’s-steads).

Vigdís kona Þórðar godda var nokkuð skyld Þórólfi og sneri hann því þangað
Vigdís, wife of Þórðr goddi was somewhat bound to (or related, ie bound by kinship) to Þórólfr and he turns (ie goes) for-that-(reason) thither

til bæjar. Spurn hafði Þórólfur af því áður hversu þar var háttað, að Vigdís
toward (the) farm. Þórólf had news of that before(hand) how (it) was there arranged (ie how matters stood), that Vigdís

var meiri skörungur í skapi en Þórður bóndi hennar. Og þegar um kveldið er
was more notable in temperament (haughtier) than Þórð, her husband. And during the-evening as-soon-as

Þórólfur var þar kominn gengur (ganga) hann til fundar við Vigdísi og segir henni
Þórólf was (had) come there, he walks to a meeting with Vigdís and informs her

til sinna vandræða og biður hana ásjá.
of his trouble and asks her for help (protection)