Here’s my translation

Alan

Sá atburður varð einnhvern dag um þingið að fest voru út klæði manna til
That event occurred during the-Thing that (the) clothing of people were hung out for

þerris. Þorgils átti blá heklu. Hún var breidd á búðarvegginn.
drying. Þorgils had a blue hooded-cloak. It was spread on the-booth’s-wall.

Menn heyrðu að heklan kvað þetta:
People (men) heard that the-hooded-cloak recited this (obviously not the cloak of secrecy J):

Hangir vot á vegg
(It) hangs wet (vátr) on (the) wall,

veit hattkilan bragð,
the-hood-cloak (presumably an older form of hekla?) knows a trick (scheme),

þvígit oftar þurr,
not the more-often dry (þurr, adj nom fem sg) (ie it will not be dry ever again)

þeygi dyl eg að hún viti tvö.
Yet I conceal not that it (ie the cloak, feminine) knows two (tricks, schemes).

Þetta þótti hið mesta undur.
This was-reckoned the greatest wonder.

Hinn næsta dag eftir gekk Þorgils vestur yfir ána og skyldi gjalda fé sonum
The next day after, Þorgils walked west over the-river and should pay (the) money to the sons

Helga. Hann sest niður á hölknið fyrir ofan búðirnar. Með honum var Halldór
of Helgi. He sets-himself down on the-stony-field above the-booths. With him was Halldórr

fóstbróðir hans og fleiri voru þeir saman. Þeir synir Helga komu til
his foster-brother and they were more together. They (the) sons of Helgi came to

mótsins. Þorgils tekur nú að telja silfrið. Auðgísl Þórarinsson gekk þar hjá
the-meeting. Þorgils starts now to count the-silver. Auðgísl Þórarinn’s-son walked there alongside

og í því er Þorgils nefndi tíu þá hjó Auðgísl til hans og allir þóttust
and in that (instant) when Þorgils named (counted) ten then Auðgísl hewed at him and all bethought-themselves

heyra að höfuðið nefndi ellefu er af fauk hálsinum. Auðgísl hljóp til
to hear that the-head named (counted) eleven when off (it) flew-of (fjúka, Z2) from-the-neck. Auðgísl ran to

Vatnsfirðingabúðar en Halldór hljóp þegar eftir honum og hjó hann í búðardurunum til bana.
(the) Vatnsförðr-folks-booth (gen singular) but (and) Halldórr ran at-once after him and hewed him to death in the-booth’s-doorway.


Þessi tíðindi komu til búðar Snorra goða að Þorgils Hölluson var veginn.
These tidings came to (ie reached) (the) booth of Snorri goði (chieftain-priest) that Þorgils Halla’s-son was slain.

Snorri segir: "Eigi mun þér skilist hafa. Þorgils Hölluson mun vegið hafa."
Snorri says: You will not have understood (lit: “(It) will not have understood for you, ie you must be mistaken, pp of skiljast, Z10, impers construction). Þorgils Halla’s-son will have slain (ie done the slaying).”

Maðurinn segir: "Enda fauk höfuðið af bolnum."
The-person (man) says: “And-besides the-head flew-off from the-trunk.”

"Þá má vera að satt sé," segir Snorri.
“Then (it) may be that (it) is true,” says Snorri.

Sæst var á víg þessi sem í sögu Þorgils Höllusonar segir.
(It) was come-to-terms (pp of sættast) on this slaying as (it) says in the Saga of Þorgils Halla’s-son.


68. kafli - Kvonfang Þorkels
Chapter 68 – Þorkel’s marriage (wife-taking)

Það sama sumar er Þorgils Hölluson var veginn kom skip í Bjarnarhöfn.
That same summer when Þorgils Halla’s son was slain, a ship came into Bjarnarhöfn (Björn’s-harbour).

Það átti Þorkell Eyjólfsson. Hann var þá svo auðigur maður að hann átti tvo
Þorkell Eyjólfr’s-son owned that. He was then (ie at that time) so wealthy a man that he owned two

knörru í förum. Annar kom í Hrútafjörð á Borðeyri og var hvortveggi viði hlaðinn.
knars (merchant-ships) in (trading) journeys (voyages). (The) second came into Hrútafjörðr (Rams’-fjord) at Borðeyri and each-of-the-two was laden with wood (timber).

Og er Snorri goði spurði útkomu Þorkels ríður hann þegar til skips.
And when Snorri goði (chieftain-priest) learned of Þorkell’s coming-out (ie arrival in Iceland) he rides at-once to (the) ship.

Þorkell tók við honum með allri blíðu. Þorkell hafði og mikinn drykk á skipi sínu.
Þorkell received him with all friendliness. Þorkell had also much drink on his ship. (This may explain why the ships landed at different places J)

Var veitt allkappsamlega. Varð þeim og margt talað. Spurði Snorri
(it) was given (served) very-liberally. (It) became (was) also friendlily (much, communicatively, see both margr, Z1 and Z3) spoken with them (ie they had a good old chinwag). Snorri asked for

tíðinda af Noregi. Þorkell segir frá öllu vel og merkilega. Snorri segir í
tidings from Norway. Þorkell says about everything fully and clearly. Snorri says in

mót þau tíðindi sem hér höfðu gerst meðan Þorkell hafði utan verið.
return those tidings which had come-to-pass while Þorkell had been abroad.