Not much to say this time.

> Hnekkja Írar nú ferðinni og hlaupa saman í eitt þorp.

> (The) Irish now fall-back in-the-journey and run together
> through an open,-unsheltered-place.

> (The) Irish now fall back from the travel and run together
> in one village. (Z has village - specifically in this
> instance -, but M&P has huddle, which makes more sense)

> The Irishmen now fall-back (hnekkja ferð = hörfa) and run
> together into a certain thorp (village).

With the aid of a pointer from a note in another edition of
the saga, I discovered the basis for M&P's interpretation.
In Ch. 82 (Hópaheiti) of 'Skáldskaparmál' Snorri writes:

Maðr heitir einn hverr,
tá, ef tveir eru,
þorp, ef þrír eru,
fjórir eru föruneyti,
flokkr eru fimm menn,
sveit, ef sex eru,
sjau fylla sögn,
átta bera ámælisskor,
nautar eru níu,
dúnn, ef tíu eru,
ærir eru ellifu,
toglöð er,
ef tólf fara,
þyss eru þréttán,
ferð er fjórtán,
fundr er þá,
er fimtán hittask,
seta eru sextán,
sókn eru sjautján,
œrnir þykkja óvinir,
þeim er átján mœtir,
neyti hefir sá,
er nítján menn hefir,
drótt er tuttugu menn,
þjóð eru þrír tigir,
fólk eru fjórir tigir,
fylki eru fimm tigir,
samnaðr of eru sex tigir,
sørvar eru sjau tigir,
öld eru átta tigir,
herr er hundrað.

This describes a mere three people as a <þorp>. Presumably
the whole thing is intended figuratively and poetically, but
it does give some license for using <þorp> to mean 'a
smallish cluster of people'. (The edition in question
suggests that something like German <Schar> 'crowd, throng'
may be intended, using this passage from 'Skáldskaparmál' as
justification.)

> Konungur spyr hver skipi stýrði.
> (The) king asks who steered (i.e., captained) (the) ship.
> (The) king asks who captained the ship.
> (The) King asks who steered (the) ship.

Although <stýra> is cognate with 'steer' and can have that
meaning, here it definitely has the extended sense 'to
govern, to manage' -- or in this context, 'to command, to
captain'.

> Ólafur mælti: "Hvort ertu konungur Íra?"
> Olaf spoke: "Whether are (you) an Irish king?"

The 'you' is actually present: <ertu> is a contraction of
<ert þú>. 'Irish king' would be <konungr írskr>. <Íra> is
a genitive plural, 'of [the] Irish'.

> Olaf spoke, "Are you king of (the) Irish?"
> Ólafr spoke: “(So) are you (the) king of (the) Irish?”

Brian