Translation follows...

Þann vetur er Ã"lafur bjó fyrst í Hjarðarholti hafði hann margt hjóna og vinnumanna.

That winter which Olaf first lived in Hjardarholt, he had many servants and laborers.

Var skipt verkum með húskörlum.

(It) was divided up (as) to work (plural, dative) with man-servants.

Gætti annar geldneyta en annar kúneyta.

Some tended barren-cattle and others productive-cows.

Fjósið var brott í skóg eigi allskammt frá bænum.

The cow-house was away in (the) forest, not a short-distance from (the) farm-houses.

Eitt kveld kom sá maður að Ã"lafi er geldneyta gætti og bað hann fá til annan mann að gæta nautanna "en ætla mér önnur verk."

One evening such a man who tended barren cattle came to Olaf and asked him to get another man to tend the the cattle “and set-before me another job.”

Ã"lafur svarar: "Það vil eg að þú hafir hin sömu verk þín."

Olaf answers: “I want that, that you have that, your same work.”

Hann kvaðst heldur brott vilja.

He stated-for-himself wished rather (to go) away.

"Ábóta þykir þér þá vant," segir Ã"lafur.

“You then think imperfect,” says Olaf. (Closest I could find in Z. was: ábóta-vant, a. n. in need of improvement, imperfect)

"Nú mun eg fara í kveld með þér er þú bindur inn naut og ef mér þykir nokkur vorkunn til þessa þá mun eg ekki að telja ella muntu finna á þínum hlut í nokkuru."

“I will now go tonight with you when you tie-up the cattle and if (it) seems to me some excuse for this then I will not find fault, otherwise would find to your lot somewhat (??).

Ã"lafur tekur í hönd sér spjótið gullrekna, konungsnaut, gengur nú heiman og húskarl með honum.

Olaf takes in his hand the gold-inlaid spear, (the) king's gift, goes now from home, and (his) house-servant with him.

Snjór var nokkur á jörðu.

Some snow was on (the) ground.

Koma þeir til fjóssins og var það opið.

They came to the cattle-house and it was open.

Ræddi Ã"lafur að húskarl skyldi inn ganga "en eg mun reka að þér nautin en þú bitt eftir."

Olaf said that (the) house-servant should go in “and I will drive to you the cattle and you (bitt?) after.”

Húskarl gengur að fjósdurunum.

(The) house-servant goes to (the) cattle-house-doors.

Ã"lafur finnur eigi fyrr en hann hleypur í fang honum.

Olaf finds not before than he leaps in his arms.

Spyr Ã"lafur hví hann færi svo fæltilega.

Olaf asks why he went so (fearfully?).

Hann svarar: "Hrappur stendur í fjósdurunum og vildi fálma til mín en eg er saddur á fangbrögðum við hann."

He answers: “Hrapp stands in the cattle-house-doors and wanted to try to get a hold of me but I have got enough of wrestling with him.” (Z. fálma til e-s, to try to get hold of one) (Z. saddr - vera s. á e-u, to have got enough of)

Ã"lafur gengur þá að durunum og leggur spjótinu til hans.

Olaf then goes to the door and thrusts the spear at him. (Z. leggja 12 - to stab, thrust, with a weapon)

Hrappur tekur höndum báðum um fal spjótsins og snarar af út svo að þegar brotnar skaftið.

Hrapp takes both hands around the socket of the spear and twists off out so that at once the shaft breaks.

Ã"lafur vill þá renna á Hrapp en Hrappur fór þar niður sem hann var kominn.

Olaf wants then to thwart Hrapp but Hrapp then goes down where he had come.

Skilur þar með þeim.

They part there. (Z. skilja 9 - skilr með Þeim, they part)

Hafði Ã"lafur skaft en Hrappur spjótið.

Olaf had the shaft but Hrapp the spear.

Eftir þetta binda þeir Ã"lafur inn nautin og ganga heim síðan.

After this they, Olaf (and the house-servant) tie-up the cattle and then go home.

Ã"lafur sagði nú húskarli að hann mun honum eigi sakir á gefa þessi orðasemi.

Olaf now said to (the) house-servant that he would not him on-account-of to give this verbage.

Um morguninn eftir fer Ã"lafur heiman og þar til er Hrappur hafði dysjaður verið og lætur þar til grafa.

The morning after Olaf went from home and there to where Hrapp had been buried and caused there to be dug (up).

Hrappur var þá enn ófúinn.

Hrapp was then still not-decayed.

Þar finnur Ã"lafur spjót sitt.

Olaf finds there is spear.

Síðan lætur hann gera bál.

Then he causes to be made a pyre.

Er Hrappur brenndur á báli og er aska hans flutt á sjá út.

Hrapp is burned at the pyre and his ashes are conveyed out to sea.

Héðan frá verður engum manni mein að afturgöngu Hrapps.

Henceforth happens to no man injury at Hrapp's ghost.