Here‘s my translation.

Kveðja

Alan

Fór Þorleikur nú á fund landseta sinna, Kotkels og Grímu, og bað þau gera
Þorkleikr journeyed now to a meeting of (ie to see) his tenants, Kotkell and Gríma, and asked them to do

nokkurn hlut þann er Hrúti væri svívirðing að. Þau tóku undir þetta léttlega
some thing, that which would-be a disgrace to Hrútr. They seconded (agreed to, see taka undir, Z12) this readily

og kváðust þess vera albúin. Síðan fer Þorleikur heim.
and declared-of-themselves to be completely-ready for that. After-that Þorleikr journeys (present) home.

En litlu síðar gera þau heimanferð sína Kotkell og Gríma og synir þeirra.
But (And) a little later, they made a journey-from-their-home, Kotkell and Gríma and their sons.

Það var um nótt. Þau fóru á bæ Hrúts og gerðu þar seið mikinn. En er
That was durring (the) night. They journey to Hrútr‘s farmhouse (MM&HP have „on (the roof of his) farmhouse“) and made there a great incantation. But (And) when

seiðlætin komu upp þá þóttust þeir eigi skilja er inni voru hverju gegna mundi.
sounds (cries)-of-the-incantation came up (arose), then those who were inside bethought-themselves not to understand (skilja, Z6) what (it) would signify (gegna, Z3).

En fögur var sú kveðandi að heyra. Hrútur einn kenndi þessi læti og
But (And) fair was that chanting to hear. Hrútr alone recognised these sounds (cries) and

bað engan mann út sjá á þeirri nótt "og haldi hver vöku sinni er má og mun
bade no man to look out during that night „and each (person) should-keep himself awake who can and (it) will

oss þá ekki til saka ef svo er með farið."
then not do-harm to us if (it) is so managed (see fara með, Z18).“

En þó sofnuðu allir menn. Hrútur vakti lengst og sofnaði þó.
But nevertheless all persons (men) fell-asleep (sofna  not sofa). Hrútr remained-awake longest and (but) fell-asleep nevertheless.

Kári hét son Hrúts er þá var tólf vetra gamall og var hann efnilegastur sona Hrúts.
(The) son of Hrútr was-called Kári and then was twelve winters old and he was (the) most-promising son of Hrútr.

Hann unni honum mikið. Kári sofnaði nær ekki því að til hans var leikur ger.
He (ie presumably Hrútr) loved him greatly. Kári did not not nearly (quite?) fall-asleep because (the) attack (here, the incantation) was made against (directed towards) him (see leikr er görr til e-s, under leikr, Z1).

Honum gerðist ekki mjög vært. Kári spratt upp og sá út. Hann
(It) became not very comfortable for him (ie he did not feel much at ease, see værr, Z1). Kári sprang up and looked out. He.

gekk á seiðinn og féll þegar dauður niður.
walked into (possibly, submitted to, fell under?, cf ganga á vald e-s, under ganga Z15,) the-incantation (spell) and fell down dead at-once.

Hrútur vaknaði um morguninn og hans heimamenn og saknaði sonar síns.
Hrútr awoke the next-morning and his household-servants and missed (sakna not soekja) his son.

Fannst hann örendur skammt frá durum. Þetta þótti Hrúti hinn mesti skaði og lét
He was-discovered dead a short-distance from (the) doorway. This seemed to Hrútr the greatest loss and (he) caused

verpa haug eftir Kára. Síðan ríður hann á fund Ólafs Höskuldssonar og segir
to cast-up a mound over Kári. After-that he rides to a meeting of (ie to see) Ólafr Höskuldr’s-son and says

honum þau tíðindi er þar höfðu gerst. Ólafur varð óður við þessi tíðindi og
to him those tidings which there had arisen. Ólafr became mad (furious) at these tidings and

segir verið hafa mikla vanhyggju er þeir höfðu látið sitja slík illmenni
says (there) to have been a great-lack-of-forethought that (when?) they had allowed such a wicked-persons to sit (stay)

hið næsta sér sem þau Kotkell voru, sagði og Þorleik hafa sér illan hlut af deilt (deila)
right-next to them as they, Kotkell (and family), were, said also Þorleikr to have dealt (deila) off for himself a bad lot (hlutr, Z1) (brought these troubles on himself?)

af málum við Hrút en kvað þó meira að orðið en hann mundi vilja.
from (his) dealings with Hrútr but (and) declared nevertheless more (had) come-about than he (Þorleikr) would want.

Ólafur kvað þá þegar skyldu drepa þau Kotkel og konu hans og sonu "er þó ofseinað nú."
Ólafr declared they should at-once kill them, Kotkell and his wife and sons “(even) when (it) now (is) nevertheless too-late.”


Þeir Ólafur og Hrútur fara með fimmtán menn. En er þau Kotkell sjá mannareið
They, Ólafr and Hrútr, journey with fifteen men. But when they, Kotkell (and family) see the riding-of-men (convoy on horseback)

að bæ sínum þá taka þau undan í fjall upp. Þar varð Hallbjörn slíkisteinsauga
at their farm, then they run away (taka undan) up into (the) mountain (take to the hills). There Hallbjörn Sleek-stone-Eye became

tekinn og dreginn belgur á höfuð honum. Þegar voru þá
taken (ie captured) and a skin-bag drawn over (on-to) his head. At-once were then

fengnir menn til gæslu við hann en sumir sóttu eftir þeim Kotkatli og Grímu
persons (men) obtained (assigned, pp of fá) for watching over him but (and) some (men, people) sought after them, Kotkell and Gríma

og Stíganda upp á fjallið. Þau Kotkell og Gríma urðu áhend á hálsinum milli
and Stígandi up on the mountain. They, Kotkell and Gríma became seized (were captured) on the ridge (neck) between

Haukadals og Laxárdals. Voru þau þar barin grjóti í hel og var þar ger að þeim dys úr grjóti
Haukadalr and Laxárdalr. They were there stoned to death (see berja e-n grjóti í hel, under hel, Z3) and a cairn was then made for them out of stone

og sér þess merki og heitir það Skrattavarði. Stígandi
and (one) sees a marker (there) and that is-called Skrattavarði (Sorcerers’-Cairn) . Stígandi

tók undan suður af hálsinum til Haukadals og þar hvarf hann þeim. Hrútur og
ran-away (taka undan) south from the-ridge to Haukadalr and there he lost them (ie shook them off). Hrútr and

synir hans fóru til sjávar með Hallbjörn. Þeir settu fram skip og reru (róa) frá
his sons journeyed to (the) sea with Hallbjörn. They launched a ship and rowed (róa) from

landi með hann. Síðan tóku þeir belg af höfði honum en bundu stein við
land with him. After-that they took the skin-bag off (his) head and bound a stone around

hálsinn. Hallbjörn rak þá skyggnur á landið og var augnalag hans ekki gott.
the-(his)-neck. Hallbjörn  cast wide-open eyes (see reka, Z5) on-to the-land (ashore) and his look (the look in his eyes, or what he saw?) was not good.