Here’s my translation, based as it is on Grace’s original J

Alan

Þá svarar Þorgerður: "Lítils er sveinn verður," segir hún, "en Þorkatli  hefir alls kostar illa farið þetta mál
Then Þorgerðr answers, “(The) lad (himself) is worthy of little (not worth worrying about),” says she, “but for Þorkell this matter has gone badly in every respect

því að hann vissi fyrirsát Laugamanna fyrir Kjartani og vildi eigi  segja honum
because he knew of (the) lying-in-wait for (ambush of) Kjartan of the people-of-Laugar and wanted not to tell him,

en gerði sér af gaman og skemmtan af viðskiptum þeirra en hefir síðan lagt til mörg óvingjarnleg orð.
but made sport and amusement for himself from their hostilities (hostile intercourse, viðskipti, Z2), but (and) has ever-since put forth many unfriendly (hostile, adj, neut acc pl) words.

Mun yður fjarri fara bræðrum að þér munuð þar til hefnda leita sem ofurefli er fyrir
(It) will go far off (fjarri, Z2) (ie there´s a snowflakes chance in Hell) with you brothers that you will seek thereto to avenge when an excessive-force is before you (ie when confronted by a greater force)

er þér getið eigi launað sín tillög slíkum mannfýlum sem Þorkell er."
when you are were not (even) able (geta + pp, Z2) to reward (pay back) such worthless fellows (dative, the person rewarded, see launa, CV1) as Þorkell is for their contribution (tillag, Z1, neut acc pl, the thing for which the reward is given, see launa, CV).”

Halldór svarar fá hér um en bað Þorgerði ráða vist sveins. Fám dögum síðar ríður Halldór
Halldór answers little here regarding (it), but bade Þorgerðr to settle (the) lad´s lodgings. A few days later Halldór rides

heiman og þeir nokkurir menn saman. Hann fer til Hafratinda og tók hús á Þorkatli.
from home and those some men together. He goes to Hafratindar and rushed (the) house towards Þorkell.

Var Þorkell leiddur út og drepinn og varð hann ódrengilega við sitt líflát. Engu lét Halldór ræna og fór heim við svo búið.
Þorkell was lead out and slain and he became unworthy-of-a-man at his death. Halldor caused to plunder nothing (ie they left the house untouched) and went home, things being so (see under buinn).

Vel lét Þorgerður yfir þessu verki og þótti minning sjá betri en engi.
Þorgerðr was pleased with this deed (expressed approval) and this (sjá) requital (revenge, minning, Z4) seemed better than nothing.

Þetta sumar var kyrrt að kalla og var þó hið fæsta með þeim Bolla og Ólafssonum.
This summer was nominally quiet and (but) nevertheless (it) was most-cool (reserved, fá, Z2) between them, Bolli and Ólafr’s-sons.

Létu þeir bræður hið ólinlegsta við Bolla en hann vægði í öllu fyrir þeim frændum,
Those brothers behaved the most-unleniently (played serious hard ball) towards Bolli, but he yielded in everything before those kinsmen,

þess er hann minnkaði sig í engu því að hann var hinn mesti kappsmaður. Bolli hafði fjölmennt og hélt sig ríkmannlega
in-so-far-as (see þess er, under þess, Z2) he lowered himself in nothing, because he was the greatest man-of-elan (ie he had dash, flare, style). Bolli had many people and held (maintained) himself magnificently

því að eigi skorti fé.
because wealth (fé is the subject) was-not-lacking.

Steinþór Ólafsson bjó á Dönustöðum í Laxárdal. Hann átti Þuríði Ásgeirsdóttur er átt hafði Þorkell kuggi.
Steinþór Ólafr’s son lived at Dönustaðir in Laxárdalr. He had (in marriage) Þúriðr Ásgeirr’s-daughter  whom Þorkell kuggi (Cog?) had had (in marriage).

Þeirra son hét Steinþór er kallaður var Gróslappi.
Their son was-called Steinþór who was called Gróslappi.

53. kafli - Af Þorgerði Egilsdóttur
Chapter 53. Of Þorgerðr Egill’s-daughter

Hinn næsta vetur eftir andlát Ólafs Höskuldssonar þá sendir Þorgerður Egilsdóttir orð Steinþóri
The next winter after (the) death of Ólafr Höskuldr’s son, then Þorgerðr Egill’s-daughter sends word to Steinþór

syni sínum að áliðnum vetri að hann skyldi koma á fund hennar. Og er þau mæðgin hittast
her son at the passing of winter that he should come to a meeting with (ie to see) her. And when those mother-and-son (moeðgin) meet-each-other,

segir hún honum skil á að hún vill fara heiman og vestur til Saurbæjar að hitta Auði vinkonu sína.
she says to him (the) fact that she wants to go from home and west to Saurboer (Mud Farm, gen singular) to meet Auð her female-friend.

Hún segir Halldóri að hann skal fara. Þau voru fimm saman. Halldór fylgdi móður sinni, fara nú
She says tos Halldór that he shall go. They were five together. Halldór accompanied his mother, (they) go now

til þess er þau koma fyrir bæinn í Sælingsdalstungu.
until they come in-front-of the farm in Saelingsdalstunga.

Þá sneri Þorgerður hestinum upp að bænum og spurði: "Hvað heitir bær sjá?"
Then Þorgerðr turned the (her) horse up to the farm and asked, “What is-called that farm?”