Sorry to be so far behind, but I was on the road over the
holiday. This one was in good shape anyway.

> Kálfur Ásgeirsson gengur til fundar við Kjartan og spyr
> hvað hann ætlaði ráða sinna um sumarið.

> Kalfur, son of Asgeir, goes to meet with Kjartan and asks
> what he intended to plan of journeys during the summer.

> Kalf Asgeir’s son goes to a meeting with Kjartan and asks
> what he intended (for) his plans during the summer.

> Kálfr Ásgeir’s-son went (on foot) to a meeting with (to
> see) Kjartan and asked what he thought of his plans (ie
> what he intended to do) during the-summer.

I'd make it 'what he intended [of] his plans', meaning
simply 'what he planned'.

> Konungur svarar: "Þann kost mun eg þér gera á því Kjartan
> að þú farir til Íslands út í sumar og brjótir menn til
> kristni þar annaðhvort með styrk eða ráðum.

> The king answers: "I will give you that choice to that,
> Kjartan, that you go out to Iceland in the summer and
> compel men to Christianity there either with force or
> agreements. (Z. kostr 1 - mun ek engan kost á gøra, I will
> give no choice in the matter)

> (The) king answers, “That choice I will offer you in it,
> Kjartan, that you go out to Iceland in summer and force
> men to Christianity there either with force or words.

> (The) king answers: “I will give for you that choice (see
> göra kost, Z4) on that (basis, condition (?)), Kjartan,
> that you go out to Iceland this summer and force persons
> (men) to Christianity there either (annarr hvárr...eða,
> Z1) with physical-force or (with) wise counsels.

'On the [condition]', I think; at any rate that seems to be
the intended sense.

> Sömdu honum þau því að það sögðu menn að þeir hafi
> jafnmiklir menn verið þá er þeir gengu undir mál, Ólafur
> konungur og Kjartan.

> (It) agreed (sömdu = semja?) to him that because that told
> people that they have been equally great men when they
> undertook a matter, King Olaf and Kjartan.

> They suited him because people said it that they have been
> equally large men then when they went under measure, King
> Olaf and Kjartan.

> Those (clothes) became (3rd pers pl past tense of sama)
> him because persons (men) said that, that they would-have
> been equally-large (sized) persons (men) when they went
> under (submitted to) (the) measuring (tape) (mál, Z1),
> King Ólafr and Kjartan.

In other words (in case it's not entirely clear), they had
been made to the king's measure but fitted K. well because
the two men were the same size.

Brian