Here’s my translation

Kveðja

Alan

En er Írar sjá viðbúning þeirra þá skýtur þeim skelk í bringu
But when the Irishmen see their preparation (for battle), then (it) shoots fright into their chests (ie their hearts fail them)

og þykir þeim eigi jafnauðvelt féfang sem þeir hugðu (hyggja) til. Hnekkja Írar nú ferðinni og
and (the) booty (property-taking) seems to them not (so) easy-made as they (had) looked-forward to. The Irishmen now fall-back (hnekkja ferð = hörfa) and

hlaupa saman í eitt þorp. Síðan kemur kurr mikill í lið þeirra og þykir þeim
run together into a certain thorp (village). After-that a great hubbub comes into their host and (it) seems to them

nú auðvitað að þetta var herskip og muni vera miklu fleiri skipa von (ván), gera
now easily-known (abundantly clear, bleedingly obvious) that this was a warship and (the) expectation will be of many more ships (they could expect many more ships), (they) make

nú skyndilega orð til konungs. Var það og hægt (hoegr) því að konungur var þá skammt
now hastily a report to (the) king. That was also convenient because (the) king was then a short-distance

í brott þaðan á veislum (veizla). Hann ríður þegar með sveit manna þar til sem skipið
away from there at entertainments (feasts). He rides at-once with a small-detachment of men there to where the-ship

var. Eigi var lengra á millum landsins og þess er skipið flaut (fljóta)
was. (There) was not further (distance) between the land and that (position) where the ship floated

en vel mátti nema tal millum manna. Oft höfðu Írar veitt þeim árásir með skotum
than talk could well (easily) reach between men (ie the ship was with calling distance from the shore). Often had (the) Irishmen made an assault at them with missiles

og varð þeim Ólafi ekki mein að.
and (but) harm befell not them, Ólafr (and co) as-a-result-of (by-reason-of) (that).


Ólafur stóð (standa) með þessum búningi (dative singular) sem fyrr var ritað og fannst (finnast) mönnum margt um
Ólafr stood with this attire as before was written and (it) impressed men greatly about

hversu skörulegur sjá (demonstr pron) maður var er þar var skipsforingi.
how imposing that man was who was there, (the) leader-of-the-ship (ie captain).

En er skipverjar Ólafs sjá mikið riddaralið ríða til þeirra og var hið fræknlegsta
But when Ólafr’s crew see a great troop-of-horsemen (cavalry) ride towards them and (that it) was the most valiant (troop),

þá þagna þeir því að þeim þótti mikill liðsmunur við að eiga.
then they become-silent because (there) seemed to them a great disparity-in-force to have to deal (fight) with (ie the odds were agains them).


En er Ólafur heyrði þenna kurr sem í sveit hans gerðist bað hann þá herða
But when Ólafr heard this murmuring which arose in his company, he asked them to harden

hugina "því að nú er gott efni í voru máli. Heilsuðu þeir Írar nú
the (their) resolves “because now is a good state-of-affairs in our situation. They, (the) Irishmen greeted now

Mýrkjartani konungi sínum."
Mýrkjartan, their king.”


Síðan riðu þeir svo nær skipinu að hvorir máttu skilja hvað aðrir töluðu.
After-that they rode so near the-ship that each (side) could understand what the other (side) said.

Konungur spyr hver skipi stýrði. Ólafur segir nafn sitt og spurði hver sá
(The) King asks who steered (the) ship. Ólafr says his-own name and asked who that-one

væri hinn vasklegi riddari er hann átti þá tal við.
was, the brave-looking (cavalier) horseman (chevalier) whom he had then a talk with.


Sá svarar: "Eg heiti Mýrkjartan."
That-one (he) answers: “I am-called Mýrkjatan.”


Ólafur mælti: "Hvort ertu konungur Íra?"
Ólafr spoke: “(So) are you (the) king of (the) Irish?”


Hann kvað svo vera. Þá spyr konungur almæltra tíðinda. Ólafur leysti vel úr
He declared (it) to be so. Then (the) king asks of general tidings. Ólafr answers (rattles off, see leysa ór) well

þeim tíðindum öllum er hann var spurður. Þá spyr konungur hvaðan þeir hefðu
all those tidings which he was informed-of. Then (the) king asks whence they had

út látið eða hverra menn þeir væru. Og enn spyr konungur vandlegar (comparitive adverb) um ætt Ólafs
put-to-sea (see láta út, Z12) or whose men they were. And still (the) king asks more-exactly about Ólafr’s family

 en fyrrum því að konungur fann (finna) að þessi maður var ríklátur og vildi
than formerly because the king perceived that this man was lordly and wanted

eigi segja lengra en hann spurði.
not to talk (answer) at-greater-length than (in direct response to what) he (ie the king) asked.