Here´s my translation.

Kveðja

Alan

Þann vetur er Ólafur bjó fyrst í Hjarðarholti hafði hann margt hjóna og
In that winter when Ólafr lived first in Hjarðarholt, he had many house-servants and

vinnumanna. Var skipt verkum með húskörlum. Gætti annar geldneyta en annar
workmen. (There) was a sharing of tasks among the men-servants. One took-care-of (the) barren-cattle (steers) but (and) another

kúneyta. Fjósið var brott í skóg eigi allskammt frá bænum (boer).
of (the) milch-cows. The-cow-house (byre) was away in (the) forest not a very-short-distance from the-farmstead.

Eitt kveld kom sá maður að Ólafi er geldneyta gætti og bað hann fá til annan
One evening came that man to Ólafr who took-care-of (the) barren-cattle (steers) and bade him to get another

* Grace, animal husbandry is not my area of expertise, but my initial reaction was consistent with your view.

mann að gæta nautanna "en ætla mér önnur verk."
man to-take-care-of the-cattle “but (and bade him) to intend (propose) for-me (to do) other tasks.”

* If the servant was doing the intending, I suspect the pronoun would have been sér (reflexive) rather than mér.

Ólafur svarar: "Það vil eg að þú hafir hin sömu verk þín."
Ólafr answers: “I want that, that you have those same tasks of yours.”

Hann kvaðst heldur brott vilja.
He declared-of-himself rather to want (to go) away.

"Ábóta þykir þér þá vant," segir Ólafur. "Nú mun eg fara í kveld með þér er
“Wanting-of-improvement seems for you then (it seems you feel like doing something better?),” says Ólafr. “Now I will go this evening with you when

þú bindur inn naut og ef mér þykir nokkur vorkunn til þessa þá mun eg ekki
you tie in (enclose, round up?) (the) cattle and if (there) seems to me some excuse in this, then I will not

að telja ella muntu finna á þínum hlut í (hluti: typo?) nokkuru."
find fault (blame you, see telja at, Z5), otherwise you-will find fault with (cf finna at e-u, Z8) your (own) position somewhat. (not be totally happy with your situation)”

Ólafur tekur í hönd sér spjótið gullrekna, konungsnaut, gengur nú heiman og
Ólafr takes in his hand the gold-driven (inlaid) spear, (the) king’s-gift, walks now from-home and

húskarl með honum. Snjór var nokkur á jörðu. Koma þeir til fjóssins og var
(the) manservant with him. Some snow was on (the) ground. They came to the-cow-house and was

það opið. Ræddi Ólafur að húskarl skyldi inn ganga "en eg mun reka að þér nautin en þú bitt (binda) eftir (eptir)."
that open. Ólafr spoke that (the) manservant should go inside “but (and) I will drive the-cattle to you but (and) you tie (them) after (that).


Húskarl gengur að fjósdurunum.
(The) man-servant walks now to the-cow-house-doorway.

Ólafur finnur eigi fyrr en hann hleypur í fang honum. Spyr Ólafur hví hann
Ólafr notices not before he (the manservant) runs into his grasp. Ólafr asks for-what (reason, ie why) he

færi svo fæltilega.
moves so fearfully (from fæla?)

Hann svarar: "Hrappur stendur í fjósdurunum og vildi fálma til mín en eg er
He answers: “Hrapp stands in the-cow-house-doorway and would-want get-hold-of me but I am

saddur á fangbrögðum við hann."
sick of (I am totally over, I have had a gut full of) wrestling against him.”

Ólafur gengur þá að durunum og leggur spjótinu til hans. Hrappur tekur
Ólafr walks then towards the doorway and thrusts the spear towards him (Hrappr). Hrappr takes

höndum báðum um fal (falr) spjótsins og snarar af út svo að þegar brotnar (brotna) skaftið.
hold of (see taka um) the socket of the spear in both hands and twists off (and) out so that at once the-shaft is-broken (brotna = to be broken).

Ólafur vill þá renna á Hrapp en Hrappur fór þar niður sem hann var kominn.
Ólafr wants then to run at (attack) Hrappr but Hrappr went down there where he was come (ie the ground?).

Skilur þar með þeim. Hafði Ólafur skaft en Hrappur spjótið. Eftir þetta
They part there. Ólafr had a shaft but (and) Hrappr the-spear (tip). After this

binda þeir Ólafur inn nautin og ganga heim síðan. Ólafur sagði nú húskarli
they, Ólafr (and manservant) tie up the-cattle and walk home after-that. Ólafr said now to (the) manservant

að hann mun honum eigi sakir á gefa þessi orðasemi.
that he will make no charge against him (ie not blame him) for this speaking out (loquacity).

Um morguninn eftir fer Ólafur heiman og þar til er Hrappur hafði dysjaður verið
During the-morning after, Ólafr goes from home and to there where Hrappr had been-buried-in-a-cairn

 og lætur þar til grafa. Hrappur var þá enn ófúinn. Þar finnur Ólafur
and caused there to dig for (him). Hrappr was then still unrotten. There Ólafr finds

spjót sitt. Síðan lætur hann gera bál. Er Hrappur brenndur á báli og er aska hans
his spear (spooky). After-that he causes to make a fire (pyre). Hrappr is burned on (the) fire (pyre)and his ashes

 flutt á sjá út. Héðan frá verður engum manni mein að afturgöngu Hrapps.
conveyed out to sea. Henceforth, harm happened to no man from Hrappr’s apparition (ghost-walking).