Here´s my translation.

Kveðja

Alan

En eftir um vorið kom Ingunn móðir Þórðar vestan af Skálmarnesi. Hann
But later during the-spring (see eptir Z.iii.1), Ingunn, mother of Þórðr came from-(the)-west from Skálmarnes (Prong-Ness). He

tók vel við henni. Hún kvaðst vilja ráðast undir áraburð Þórðar. Kvað hún Kotkel
received her well. She declared-of-herself to want to be be-settled under the protection (lit: movement of oars) of Þórðr. She declared Kotkell

og konu hans og sonu gera sér óvært í fjárránum og fjölkynngi en hafa mikið
and his wife and son to make uneasiness for (ie harass) her in (respect of their) robbery and sorcery but to have (the) great

traust af Hallsteini goða. Þórður veikst skjótt við þetta mál og kvaðst hafa skyldu
protection of Hallstein goði (priest-chieftain). Þórðr responded (víkjast við e-t, Z4) like-a-shot (in a flash) to this matter and declared-of-himself (that he/they) should (is this seems an example of use of the past infinitive, see Gordon 171?) have

rétt af þjófum þeim þótt Hallsteinn væri að móti, snarast þegar til
justice (right, réttr) from those thieves, even-though Hallstein should-be against (it, ie opposed), turns-himself (hastens) at-once to

ferðar við tíunda mann. Ingunn fór og vestur með honum. Hann hafði ferju úr
a journey with (the) tenth man. Ingunn also travelled west with him. He had (ie made use of, took, hafa, Z4) a ferry-boat out-from

Tjaldanesi. Síðan héldu þau vestur til Skálmarness.
Tjaldanes. After-that they held (course) west to Skálmarness.

Þórður lét flytja til skips allt lausafé það er móðir hans átti þar en
Þórðr caused to convey to ship all that moveable-property which his mother had (ie owned) there but (and)

smala skyldi reka fyrir innan fjörðu. Tólf voru þau alls á skipi. Þar var Ingunn
(one) should drive (the) sheep (note: impersonal construction) inside-of (?) (the) fjord. They were twelve in all on (the) ship. Ingunn was there

og önnur kona. Þórður kom til bæjar Kotkels með tíunda mann. Synir þeirra
and another woman. Þórðr came to Kotkell’s farm with (the) tenth man. Their sons,

Kotkels voru eigi heima. Síðan stefndi hann þeim Kotkeli og Grímu og sonum þeirra
Kotkell’s (and his wife’s) were not at home. After-that he summoned them, Kotkell and Gríma and their sons

um þjófnað og fjölkynngi og lét varða skóggang. Hann stefndi sökum þeim
concerning (the) theft and caused to entail-a-penalty-of (varða e-m e-t, Z5) outlawry (forest-walking) (on them). He brought (referred) those cases

til alþingis og fór til skips eftir það. Þá komu þeir Hallbjörn og
to (the) Althing and went to (his) ship after that. Then came they, Hallbjörn and

Stígandi heim er Þórður var kominn frá landi og þó skammt. Sagði Kotkell þá
Stigandi home when Þórðr was (had) come from (the) land and (but) still (only) a short-distance (away). Kotkell said then (them would be þeim, dative)

sonum sínum hvað þar hafði í gerst. Þeir bræður urðu óðir við þetta og kváðu
to his sons what had there happened. Those brothers became mad (furious) at this and declared

menn ekki hafa fyrr gengið í berhögg við þau um svo mikinn fjandskap. Síðan
people not to have gone into an open-fight with them before through such great hostility (typo: fjándskapr?). After-that

lét Kotkell gera seiðhjall mikinn. Þau færðust þar á upp öll. Þau kváðu þar
Kotkell caused to make a great incantation-scaffold (spelling-beams). They all conveyed-themselves up there onto (it). They recited there

fræði sín en það voru galdrar. Því næst laust á hríð mikilli.
their spells (froeði, Z2) but (and) those were magic-songs. Next to that (in the next instant?), a great storm came-on-suddenly (see ljósta, Z4, impers).

Það fann Þórður Ingunnarson og hans förunautar þar sem hann var á sæ staddur
Þórðr Ingunn’s-son and his travelling-companions (subject) noticed that (object) there where he was situated on (the) sea

og til hans var gert veðrið. Keyrir skipið vestur fyrir Skálmarnes. Þórður
and the-wind (weather) was sent (directed, göra, Z8) towards him (ie it had his number on it). The-ship is driven (see keyra, Z5, impers.) west off Skálmarnes. Þórðr

sýndi mikinn hraustleik í sæliði. Það sáu þeir menn er á landi voru að hann
showed great valour in (the) sea-rescue. Those persons who were on land (ashore) saw that, that he

kastaði því öllu er til þunga var utan mönnum. Væntu þeir menn er á landi voru
cast (overboard) all that which was heavy without (ie except for the) persons. Those persons who were on land (ashore) were-hopeful of

Þórði þá landtöku því að þá var af farið það sem skerjóttast var. Síðan
a landing then for Þórðr because that which was fullest-of-skerries was then gone from (them) (ie they had passed the most densely skerried bit). After-that

reis boði skammt frá landi sá er engi maður mundi að fyrri hefði uppi verið
a breaker rose suddenly from (the) land (shore), that which no person remembered (muna) that had been (ie risen) up before

og laust skipið svo að þegar horfði upp kjölurinn. Þar drukknaði Þórður og
and struck the ship such that at-once the-keel turned up. There Þórðr drowned and

allt föruneyti hans en skipið braut í spón og rak þar kjölinn er síðan
all his travelling-companions but (and) the-ship broke into pieces (was smashed to smithereens) and (it, impersonal construction) drove (tossed) the-keel there where later

heitir Kjalarey. Skjöld Þórðar rak í þá ey er Skjaldarey er kölluð.
is-called Kjalarey (Keel Island). (It) drove (tossed) (the) shield of Þórðr into that island which is-called Skaldarey (Shield Island).

Lík Þórðar rak þar þegar á land og hans förunauta. Var þar haugur orpinn að
(It) drove (the) body of Þórðr there at-once on-to land (ashore) and his travelling-companions. A burial-mound was raised upon

líkum þeirra þar er síðan heitir Haugsnes.
their bodies there where later is-called Haugsnes (Burial-Mound-Ness).