Þorsteinn surtur bjó ferð sína af vorþingi en smali var rekinn eftir ströndinni.
Thorstein Surt made ready for a journey from (the) spring Thing but (the) sheep were driven along the shore. (Z. búa 1 b. ferð sína, to make ready for a journey (voyage))
Þorsteinn skipaði ferju og gekk þar á með tólfta mann.
Thorstein arranged (i.e., prepared) (the) ship and went there with (the) twelfth man (i.e., Thorstein plus 11 others).
Var þar Þórarinn á mágur hans og Ósk Þorsteinsdóttir og Hildur hennar dóttir er enn fór með þeim og var hún þrevetur.
There was Thorarinn his in-law and Thorstein's daughter Osk and Hildr his daughter who still (in the sense of "nevertheless" I am guessing) travelled with them and she was a three-year-old.
Þorsteinn tók útsynning hvassan.
Thorstein caught a sharp southwesterly-gale.
Sigla þeir inn að straumum í þann straum er hét Kolkistustraumur.
They sail in to a current, in (to) that current which was-called Kolkistu-current.
Sá er í mesta lagi þeirra strauma er á Breiðafirði eru.
That which is very greatly the current which was in Broad-firth. (CV lag II,2 - í mesta lagi = very greatly)
Þeim tekst siglingin ógreitt.
They began the voyage unready.
Heldur það mest til þess að þá var komið útfall sjávar en byrinn ekki vinveittur því að skúraveður var á og var hvasst veðrið þá er rauf en vindlítið þess í milli.
But that most to that that then was come ebbing of-(the)-sea and/but not the favorable fair-wind because (there) was showery-weather and (there) was the sharp weather then which cleared-up but that calm in between.
Þórarinn stýrði og hafði aktaumana um herðar sér því að þröngt var á skipinu.
Thorarin steered and had the braces round his shoulders because the ship was narrow. (Z. aktaumr Þórarinn hafði -taumana um herðar sér, had the braces round his shoulders)
Var hirslum mest hlaðið og varð hár farmurinn en löndin voru nær.
The (hirslum?) was most loaded and the cargo became high and/but land was near.
Gekk skipið lítið því að straumurinn gerðist óður að móti.
The ship went little because the current became furious against (them).
Síðan sigla þeir á sker upp og brutu ekki að.
Then they sail upon a rock-in-the-sea and didn't break up against (it).
Þorsteinn bað fella seglið sem skjótast, bað menn taka forka og ráða af skipinu.
Thorstein asked (them) (to) take down the sails as soon as possible, asked (the) men (to) take punting-poles and to get the ship off. (Z. fella 1 f. segl, to take down sails) (Z. ráða 16 r. e-u af (e-u), to get off; Þ. bað menn taka forka ok r. af skipinu, to get the ship off, set her afloat)
Þessa ráðs var freistað og dugði eigi því að svo var djúpt á bæði borð að forkarnir kenndu eigi niður og varð þar að bíða aðfalls.
This advice was tried and not done (i.e., not accomplished) because (it) was both so deep (under) the-side-of-a-ship that the-punting-poles couldn't reach down (to the bottom) and (it) became there to wait-for (the) rising-tide.
Fjarar nú undan skipinu.
The ship remains high and dry. (Z. fjarar fjarar uppi, fjarar undan skipi, the ship is left aground, or remains, high and dry)
Þeir sáu sel í strauminum um daginn, meira miklu en aðra.
They saw a seal in the current during the day, much bigger than others.
Hann fór í hring um skipið um daginn og var ekki fitjaskammur.
He went in a circle about the ship during the day and was not having-short-flippers.
Svo sýndist þeim öllum sem mannsaugu væru í honum.
So (it) seamed to them all as human-eyes were in him.
Þorsteinn bað þá skjóta selinn.
Thorstein asked then (to) shoot-with-a-weapon the seal.
Þeir leita við og kom fyrir ekki.
They tried and (it) was of no avail. (Z. koma 4 k. fyrir ekki, to come to naught, be of no avail)
Síðan féll sjór að.
Then (the) sea fell to.
Og er nær hafði að skipið mundi fljóta þá rekur á hvassviðri mikið og hvelfir skipinu og drukkna nú menn allir þeir er þar voru á skipinu nema einn maður.
And is near had to the ship would float then tossed to a sharp-gale much and the ship capsizes and now they, all men who were on the ship, drown save one man.
Þann rak á land með viðum.
That (one) (was) tossed to land with (the) mast.
Sá hét Guðmundur.
Such was-named Gudmund.
Þar heita síðan Guðmundareyjar.
Afterwards (the place) there was-called Gudmund's Isles.
Guðríður átti að taka arf eftir Þorstein surt föður sinn, er átti Þorkell trefill.
Gudrid was-entitled-to be-heir-to Thorstein Black his father, which Thorkell Tatter was entitled to. (Z arfr 1 taka arf eptir e-n, to be heir to a person, to inherit)
Þessi tíðindi spyrjast víða, drukknun Þorsteins surts og þeirra manna er þar höfðu látist.
This news was-reported far-and-wide, Thorstein Black's drowning and their people that had died there.
Þorkell sendir þegar orð þessum manni, Guðmundi, er þar hafði á land komið.
Thorkell sends at-once word to this man, Gudmund, which there had come to (dry) land.
Og er hann kemur á fund Þorkels þá slær Þorkell við hann kaupi á laun að hann skyldi svo greina frásögn um líflát manna sem hann segði fyrir.
And when he comes to meet (that is, speak with) Thorkell, then Thorkell strikes a bargain with him secretly that he should so tell tell an account concerning (the) loss-of-life which he told previously. (Z, slá 6 - slá kaupi, to strike a bargain) (Z. laun - á (or með) laun, secretly)
Því játti Guðmundur.
Therefore Gudmund consented.
Heimtir nú Þorkell af honum frásögn um atburð þenna svo að margir menn voru hjá.
Thorkell now claims of him an accounting concerning this this event so to many men (who) were near.
Þá segir Guðmundur svo, kvað Þorstein hafa fyrst drukknað, þá Þórarin mág hans.
Gudmund then says so, stated (that) Thorstein had first drowned, then Thorarin his in-law.
Þá átti Hildur að taka féið því að hún var dóttir Þórarins, þá kvað hann meyna drukkna því að þar næst var Ósk hennar arfi, móðir hennar, og lést hún þeirra síðast.
Then Hildr was-entitled to take the wealth (that is, the inheritance) because she was Thorarin's daughter, then he stated (meyna?) drowned because there nearest was Osk her heir, her mother, and (lést?) she (the) last of those.
Bar þá féið allt undir Þorkel trefil því að Guðríður kona hans átti fé að taka eftir systur sína.
The money then all fell to the lot of Thorkel Tatter's because Gudrid his wife was-entitled to inherit from her sister. (Z. bera (6) e-t berr undir e-n, falls to a person's lot