Here’s my translation

Alan

Þorkell svarar: "Sástu eigi Beini er hann stóð yfir þér með reidda öxina?
Þorkell answer: „Did-you not see Beini when he stood over you with the axe carried-(poised)-on-(his)-shoulder (pp of reiða as adj)?

Og var það hin mesta ófæra því að þegar mundi hann keyra öxina í höfuð þér er
And that was the most critical-state (dangerous situation, úfoera) because he would drive (keyra, Z4) the-axe into your head as soon as (þegar…er)

eg gerði mig líklegan til nokkurs."
I showed myself inclined to (see this expression under líkligr, Z1) anything. (ie made a move of any kind)

Ríða þeir nú heim í Ljárskóga. Líður nú föstunni og kemur hin efsta vika.
They ride now home to Ljárskógar. The-fast (ie Lent) draws on (see liða + dat, Z4) and the last week (ie Holy Week) comes (arrives).

76. kafli - Drukknan Þorkels
Chapter 76 – Þorkell´s death-by-drowning (druknan)

Skírdag snemmendis um morguninn býst Þorkell til ferðar. Þorsteinn latti
(On) Maundy-Thursday early during the-morning Þorkell readies-himself for (a) journey. Þorsteinn argued-against (letja)

þess mjög "því að mér líst veður ótrúlegt," sagði hann.
this greatly “because (the) weather seems (lítast) to me not-to-be-depended-on (útrúligr, Z2)” said he.

Þorkell kvað veður duga mundu hið besta "og skaltu nú ekki letja mig frændi
Þorkell declared (the) weather would suffice the best (as well as possible) “and you shall not dissuade me kinsman

því að eg vil heim fyrir páskana."
because I want (to be) home before (the)-Easter.”

Nú setur Þorkell fram ferjuna og hlóð. Þorsteinn bar jafnskjótt af utan sem
Now Þorkell launches (setja fram, Z11) the-ferry and loaded (hlaða) (it). Þorsteinn carried (it) off outside (ie unloaded it off the ship) as soon as (jafnskjótt…sem)

Þorkell hlóð og þeir förunautar hans.
Þorkell loaded (it) and they his travelling-companions.

Þá mælti Þorkell: "Hættu nú frændi og heft ekki ferð vora. Eigi færð þú nú
Then Þorkell spoke: “Leave-(you)-off (imperative, hætta) now kinsman and hinder (?) not our journey. You are-not-able (fá + pp) now

ráðið þessu að sinni."
to-have-your-way (ráða, Z9) in this in for the present.”

Þorsteinn svarar: "Sá okkar mun nú ráða er verr mun gegna og mun til mikils draga um ferð þessa."
Þorsteinn answers: “That (one) of us will now have-his-way (ráða, Z9) who will worse go-against (ie act less sensibly, gegna, Z1) and (it) induce much (ie, have serious ramifications, draga til e-s, Z10) concerning this journey.

Þorkell bað þá heila hittast.
Þorkell bade then to-meet-one-one-another (again) safe-and-sound.

Gengur Þorsteinn nú heim og er ókátur mjög. Hann gengur til stofu og biður
Þorsteinn goes now home and is very gloomy (úkátr). He goes (walks) to (the) sitting-room and asks

leggja undir höfuð sér og svo var gert. Griðkonan sá að tárin runnu ofan á
to put (a pillow?) under his head and so (it) was done. The-housemaid saw that the-tears ran down onto

hægindið úr augum honum. En litlu síðar kom vindsgnýr mikill á stofuna.
the-pillow (hoegindi) out-of his eyes. But (and) a little latter a great squall-of-wind came into the-sitting-room.

Þá mælti Þorsteinn: "Þar megum vér nú heyra gnýja bana Þorkels frænda."
Then Þorsteinn spoke: “There we can now hear the din of (the) slayer of kinsman Þorkell.”

Nú er að segja frá ferð þeirra Þorkels. Þeir sigla um daginn út eftir
Now (one) is to say (tell)  about (the) journey of them, Þorkell (and co). They sail during the-day out along

Breiðafirði og voru tíu á skipi. Veðrið tók að hvessa mjög og gerði hinn
Breiðafjörð and (there) were ten on (the) ship. (It) started to blow up a gale (impersonal construction, see hvessa, Z3) greatly and (it) made the

mesta storm áður létti. Þeir sóttu knálega ferðina og voru þeir menn hinir röskustu.
greatest storm before (it) abated. They sought (pushed on) doughtily the-journey and they were the most doughty persons (men).

Þorkell hafði með sér sverðið Sköfnung og var það í stokki.
Þorkell had with him the-sword Sköfnung (Shin-bone) and that was in a trunk.

Þeir Þorkell sigla þar til er þeir komu að Bjarnarey. Sáu menn ferðina af
They Þorkell (and co) sail until they came to Bjarnarey (Björn´s Island). Persons (men) saw (witnessed) the-journey from

hvorutveggja landinu. En er þeir voru þar komnir þá laust hviðu í seglið og
each-of-the-two shores (banks, land, Z2). But (and) when they were come there then (it) suddenly-blew (see ljósta, Z4) a squall-of-wind into the-sail and

hvelfdi skipinu. Þorkell drukknaði þar og allir þeir menn er með honum voru.
capsized the-ship (dative). Þorkell drowned there and all those men who were with him.

Viðuna rak víða um eyjar. Hornstafina rak í þá ey er Stafey heitir síðan.
(it) tossed the-timber widely about the-islands (plural). (It) tossed the corner-pillar into that island which is-called Stafey (Staff Isle) afterwards.

Sköfnungur var festur við innviðuna í ferjunni. Hann hittist við Sköfnungsey.
Sköfnungr was fastened to the-ribs in the-ferry. It was found by Sköfnungsey (Sköfnungr’s-Island).