> Eru þá þegar leikar lagðir í Ásbjarnarnesi og safnað víða
> til um héruð.

> (The) games were then immediately put (i.e., organized) in
> Asbjarnarness and a gathering far and wide from around the
> district.

> Immediately then games were arranged in Asbjorn’s Ness and
> (people) assembled (from) widely about (the) district.

> Then forthwith games are fixed (arranged)in Ásbjarnarnes
> and (participants?) gathered to (them) from far-and-wide
> around (the) district.

All interested parties, I suppose, participants and
spectators alike.

> Kom til vestan úr Miðfirði og af Vatnsnesi og úr Vatnsdal
> og allt utan úr Langadal.

> (They) come to (there) from the west out of Midfirth and
> from Vatnsness and out of Vatnsdale and all except
> Langadale (or "all from outside Langadale").

> (They) came from the west out of Mid Firth and from Water
> Ness and out of Water’s Dale and all out from Long Dale.

> (One set) came to (it) from-the-west out of Miðfjörðr and
> from Vatnsness and out-of Vatnsdalr and all-the-way (allt,
> Z1) from-outside (from beyond?), out-of Langadalr.

Judging from what I can easily determine of the geography,
that's probably just 'and all the way from Langadal'.

> Kjartan svarar: "Lítt hefi eg tamið mig til leika nú hið
> næsta því að annað var tíðara með Ólafi konungi.

> Kjartan answers: "I have little trained for the game now
> next because second (I) was earlier with King Olaf.

> Kjartan answers, “I have little trained myself to games
> rather because other (things) were more timely with King
> Olaf.

> Kjartan answers: “Little have I trained myself for sports
> now the rather? because (the main reason being?) other
> (activity) was more-usual with King Ólafr.

I think that <nú hið næsta> is 'most recently' -- 'next
before now', so to speak. It's definitely the adjective
<næstr>, not the adverb.

> Var þeim mönnum að móti honum skipt er þar voru
> sterkastir.

> The men were divided against him those who were strongest.

> Those men were selected against him who were the
> strongest.

> (It) was shared against him by those persons (men) who
> were strongest there (I think this must mean that all the
> strongest men had an equal opportunity to contend against
> him).

I agree with Grace's translation.

> Um daginn eftir var þar skipt til leiks.

> The next day there was a dividing up for the game.

> During the next day games were arranged.

> During the-day after (it) was there shared-out towards
> (the) sport (ie does this mean everyone got an opportunity
> to play?).

I think that it simply means that they chose up sides.

> Tala menn það að þér muni vera eftirsjá að um Guðrúnu.

> People say that, that you would miss Gudrun.

> People say it that you will be longing for Gudrun.

> Persons (men) talk that, that regret will be busy
> (“gnawing’)at you (cf vera at e-u, Z10) (dative)
> concerning Guðrún.

See <eptirsjá> (Z2): <e-m er eptirsjá at e-u> 'one misses a
thing, grieves at the loss of'. 'Folks say that, that you
are grieving at the loss of Guðrún.' (<Muni> is subjunctive
only because it’s reported discourse.)

> Færa menn það til þess að engi blíða verður á með ykkur
> Bolla frændum, svo mikið ástríki sem með ykkur hefir verið
> allar stundir.

> Men convey that of so that nothing happens to soften
> (things) with your relative Bolli, so much affectionate
> tenderness you have had always.

> People bring? up about this that no joy is between you,
> Bolli (and yourself), kinsmen, such great affectionate
> tenderness as between you has been for all time.

> People (men) put that down to (adduce as a reason, foera
> til, CV4) that, that no friendliness comes between you
> kinsmen, Bolli (and yourself), (even) as (despite?) (the)
> great affection which has been between you always (at all
> times).

It would make more sense to have the implication the other
way around: they infer the grieving from the bad relations
between Kjartan and Bolli. Perhaps 'people bring this to
[the fact that]' is to be understood as 'people base this on
the fact that'.

> Ger svo vel og hæfilega að þú lát þér ekki að þessu þykja
> og unn frænda þínum góðs ráðs.

> Do then well and fitly that this doesn't cause you to feel
> hurt and (unn?) your relative a good match. (CV RÁÐ - gör
> svá vel ok unn frænda þínum góðs ráðs, a good match)

> Do so well and suitably that you allow yourself not to
> think this (way) and do not begrudge your kinsman’s good
> match.

> Act thus well and fitly (so) that you let (is this the
> imperative form of láta or something else?) yourself not
> take this to heart (see e-m þykkir at e-u, Z1) and
> begrudge-not (unna, imperative) (the) good match (see ráð,
> Z8) to your kinsmen.

Imperative of <láta>, I think.

Brian