> Kona hans hét Þórdís dóttir Þjóðólfs lága.

> He wife was named Thordis, Thjodolf the short's daughter.

> His wife was named Thordis, daughter of Thjodolf low in
> stature.

> His wife was-called Þórdís, daughter of Þjóðólfr (the) Low
> (Short? Humble?).

'Short' is the most likely sense in a byname.

> Hún var örlynd kona.
> She was a bountiful (i.e., generous) woman.
> She was a generous woman.
> She was a liberal (or headstrong?) woman.

Context seems to point to 'generous'.

> Hún var nokkuð skyld Ósvífri.
> She was quite obligated to Osvif.
> She was somewhat obligated? to Osvif.
> She was somehow (in some degree) related to (see skyld,
> Z4, as the most likely meaning, I think) Ósvífr.

I agree.

> Málgir voru þeir sem móðir þeirra en óvinsælir.
> They were talkative like their mother but not popular.
> They were talkative as their mother and unpopular.
> They were as garrulous as their mother but unpopular.

I'd give it Rob's reading; if it were 'as garrulous as', I'd
expect <svá málgir sem>.

> Var þeirra ráðahagur hinn virðulegsti.
> Their state-of-life was the most splendid.
> Their condition was the most splendid.
> Their (presumably Ósvífr´s whole family, not just the
> servants) living-conditions were the finest.

I agree.

> Þórður var vænn maður og vasklegur, ger að sér og
> sakamaður mikill.

> Thord was a promising man and brave, skilled for himself
> and a great litigant. (Z. sakamaðr – s. mikill, a great
> litigant)

> Thord was a handsome man and valorous, has a high? opinion
> of himself and a man very disposed to litigation.

> Þórð was a fine person and of gallant-bearing,
> accomplished (within himself, see görr, Z1) and a great
> litigant.

Since a <sakamaðr> is simply 'a man qualified as an
attorney', I expect that a <sakamaðr mikill> is a skilful
lawyer rather than someone disposed to litigation.

That was nice and straightforward for a change!

Brian