Here´s my translation

Alan

Hamar stendur fyrir norðan ána er Höfði heitir. Það er í Lækjarskógslandi.
A crag stands north of the-river which is call Höfði. That is in Lækjarskógsland (Brook-Wood-Land).

Í þeim stað hafði Guðrún á kveðið að þau Snorri skyldu finnast. Þau komu þar
In that place, Guðrún had appointed that they (Snorri and she) should meet-one-another. They came there

mjög jafnsnemma. Fylgdi og einn maður Guðrúnu. Var það Bolli Bollason. Hann
almost (mjök, Z2) at-the-very-same-moment. A certain person (man) also accompanied Guðrún. That was Bolli Bolli’s-son. He

var þá tólf vetra gamall en fullkominn var hann að afli og hyggju svo að
was then twelve winters old but he was perfect of (had fully-matured in) might and mind (hyggja) such that

þeir voru margir er eigi biðu meira þroska þó að alrosknir væru. Hann bar þá og Fótbít.
they were many who would-not-await (ie have in-store for them, cf bíða, Z3) more maturity even though (they) were quite-grown-up. He carried then also Fótbítr (Leg-Biter).

Þau Snorri og Guðrún tóku þegar tal en Bolli og förunautur Snorra sátu á
They, Snorri and Guðrun began conversation immediately but (and) Bolli and Snorri’s travelling-companions sat on

hamrinum og hugðu að mannaferðum um héraðið. Og er þau Snorri og Guðrún
the-crag and attended to (the) movements (passages)-of-people around the-district. And when they, Snorri and Guðrún,

höfðu spurst tíðinda þá frétti Snorri að erindum, hvað þá hefði nýlega við borið
had asked-one-another of tidings then Snorri asked (frétta, Z2) about (the) business (at hand), what then had newly happened (bera við)

er hún sendi svo skyndilega orð.
when she sent word so hastily (adverb).

Guðrún mælti: "Það er satt að mér er þessi atburður spánnýr er eg mun nú upp bera
Guðrún spoke: “That is true that for me (ie in my mind) this event is bran-new which I will now produce (mention, lit: bear up)

en þó varð hann fyrir tólf vetrum því að um hefndina Bolla mun eg
but still it (hann because atburðr is masc) happened twelve winters ago, because concerning the-avenging of Bolli I will

nokkuð ræða. Má þér það og ekki að óvörum koma því að eg hefi þig á minnt
speak somewhat. That may also not come to you unawares (take you by surprise) because I have reminded you (of it)

stundum. Mun eg það og fram bera að þú hefir þar til heitið mér nokkurum
sometimes (now and then). I will also mention (lit: bear forward) that that you have there-to (in that regard) promised (heita) to me some

styrk ef eg biði með þolinmæði. En nú þykir mér rekin von að þú munir gaum að gefa voru máli.
help if I should-wait (biðja) with long-suffering-patience. But now (the) expectation seems to me driven-off (forlorn, rekinn) that you will give heed (pay attention ) to our case

Nú hefi eg beðið þá stund er eg fæ mér skap til en þó
Now I have waited that time which I suffer my heart to (waited as long as my heart/mind/soul can endure) but still

vildi eg hafa heil ráð af yður hvar hefnd þessi skal niður koma."
I would-want to have sound advice from you where this vengeance shall come down (what will become of this vengeance).”

Snorri spurði hvar hún hefði helst ætlað.
Snorri asked where she had most intended.

Guðrún mælti: "Það er minn vilji að þeir haldi eigi allir heilu Ólafssynir."
Guðrún spoke: “That is my wish that they should-not-keep all Ólafr’s sons hale (heill).”

Snorri kvaðst það banna mundu að fara á hendur þeim mönnum er mest voru
Snorri declared-of-himself (that he) would forbid that, to go against (á hendr) those men who were most

virðir í héraði "en náfrændur þeirra er nær munu ganga hefndunum og
highly-esteemed in (the) district “(but) and near-kinsmen of those who will go near to-the-vengeance and

er allt mál að ættvíg þessi takist af."
who would-deprive (the) whole case by this slaying-of-kinsmen (?).”

Guðrún mælti: "Þá skal fara að Lamba og drepa hann. Er þá af einn sá er
Guðrún spoke: “Then (one) shall attack Lambi and kill him. Then that one in particular is off (ie eliminated, af) who

illfúsastur er."
is most ill-willed”

Snorri svarar: "Er sök við Lamba þótt hann væri drepinn en eigi þykir mér
Snorri answers: “(There) is a case (reason) against Lambi (?) even-though he were killed but (it) does not seem to me

Bolla hefnt að heldur og eigi mun þeirra Bolla slíkur munur ger í sættum
Bolli (would-be) avenged any-the-more and such differences (as exist) between them, Bolli (and he) will not be made (ie accounted for) in agreements (?)

sem vert er ef þeim vígum er saman jafnað."
as is deserving if (it) is equated together in those deaths (ie if those deaths are set-off one against the other).