> Búi struch then with his sword-hilt-knobs on the-hammer
> (crag) and spoke: “You, Dofri,” said he, “open upp (you)
> your hall (as in the hall of the mountain king)

I'm pretty sure that Dofri really is from the same tradition
as the Mountain King of 'Peer Gynt': the name <Dofri>
appears to be a back-formation from the place-name
<Dofrafjall> or a closely related place-name. (It's thought
that the place-name element may be related to 'deep' and
refer to a cleft.)

> En er Búi hafði þetta mælt þrem sinnum þá lét í hamrinum
> sem er gengur reið og í því spratt í sundur hamarinn og
> urðu á dyr og því næst gekk kona í dyrnar.

> When Bui had spoken this three times then (he) put in the
> precipice as if going riding and in that the precipice
> sprang asunder and became a door and next to that a woman
> walked in the doors.

> And when Bui had spoken this three times then the in the
> crag (was) a sound as when (one) walks and with that the
> crag sprang asunder and turned into a door and thereupon a
> woman walked to the door.

> But when Búi had spoken this three times, then (it)
> resounded (láta, Z11) in the-hammer (crag, precipice) as
> when a clap-of-thunder (reið, Z3) goes (claps) and in that
> (instant? way?) the-hammer (crag, precipice) burst
> a-sunder and a doorway materialised (lit: came on, verða
> á, Z8) and in that next (instant) a woman walked into
> the-doorway.

I'm inclined to think that it's elliptical for <í því bili>
'in that moment'.

> Hún var fögur að áliti og vel búin, í rauðum kyrtli og
> allur hlöðum búinn, og digurt silfurbelti um sig.

> She was beautiful in appearance and well dressed, in a red
> tunic and all laced, and a thick silver belt around her.

> She was fair in appearance and well dressed, in a red
> kyrtle and all in a lacey cloak, and (with) a wide silver
> belt about her.

> She was fair of countenance and well-dressed, in a red
> tunic and all (things, neut pl) adorned with lace-work,
> and a thick silver-belt about her.

<Allur> is nom. sing. masc., presumably referring to the
<kyrtill>.

> Hún segir: "Eg heiti Fríður dóttir Dofra konungs eða því
> berð þú maður um herbergi vor?" sagði hún.

> She says: "My name is Fridr, daughter of Dofra of the
> King; do you, man, give a verdict for our lodgings?" she
> said. (??)

> She says, “I am named Frid, daughter of King Dofri, what
> brings you, man, about our quarters?” said she.

> She says: “I am-called Fríðr (Beautiful), daughter of King
> Dofri, but for what concerning our lodgings do you, a
> human, endure (bera, Z6?)?” she said (what is it about our
> abode that drew you hither?).

This one really is a bit of a puzzle. According to CV, the
use of <því> to mean <hví> 'why' is only found in mss. from
the 15th century and later, but the earliest ms. of
'Kjalnesinga saga' apparently is from the 15th century, so
we could be dealing with an instance of that usage. But
even with that reading of <því> I'm not really happy with
any of the standard glosses for <bera>; what seems to suit
the context is a personalized sense akin to the impersonal
'it carries one to a place', as if it were 'why do you bear
[yourself] about our lodgings?' or the like.

> Kalla eg ráð að þú gangir inn með mér."

> I say a plan that you go in with me."

> I say a plan that you go in with me.”

> I call agreement (I affirm my consent, say it´s OK, ráð,
> Z5?) that you should-walk inside with me.”

'Consent' is my interpretation as well, though I'd use 'say'
rather than 'call'.

> Fríður bað þá aftur lúkast hellinn og svo var.

> Fridr asked then after for the cave to be shut up and it
> was so.

> Frid bade then close the cave behind (them) and so (it)
> was.

> Fríðr bade then the-cave to be-closed shut (lúkast, Z6 but
> cf lúka aptur, Z5) and (it) was so.

Another accusative and infinitive construction.

> Hún sneri þá út að bjarginu í einum stað.

> She turned then out at the bolder in one place.

> She turns then out to the rock in one place.

> She turned then out towards the-rock (precipice = hamarr?,
> Z1 or Z2?) in one spot.

'At a certain place', I think. My guess is simply that she
turned to face the rock wall of the passage along which they
were walking.

Brian